Belize

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ARGUMENTS FOR AND AGAINST SPORTS BOOK OPERATORS RELOCATING HERE

There's been a lot of discussion lately regarding a mass exodus of sports books out of Costa Rica. The country is home to an estimated 80% of betting shops catering to the North American market, with Curacao and Antigua lagging behind. Owners are reportedly incensed over Costa Rica's newly imposed taxation, banking debacles and perceived cooperation with U.S. law enforcement. Coupled with the local media's penchant for organized crime's role in offshore gambling, many operators feel they have no other option but to seek shelter in a more "friendly" locale (not that they get much friendlier than Costa Rica).

Even before online gambling really started to touch the surface back in 1997, another of the more stable Central American countries, Belize, had already enacted legislation to allow the establishment of Internet wagering. Legislation was first drafted in 1995 and eight years later most of the tree lined buildings in the eCommerce park (otherwise known as the EPD Compound) meant to house wagering call centers remain vacant.

Since 2000, Belize has attempted to capitalize on Costa Rica's often erratic approach to its goldmine of sports betting shops. Costa Rica's sports betting industry alone is estimated to employ some 15,000 people, either directly or indirectly through the telecommunications and banking sectors. Even the hospitality industry has benefited from these businesses as that nation's largest employer, BetonSports, hosted an extravagant party last August, filling up hotels with VIP customers and celebrity guests. E! Entertainment Network even filmed a segment for its popular Wild On series that week, following celebrities through the rain forests and on white water rafting excursions.

Unlike Belize, Costa Rica is a Mecca for fun and revelry. Many of the amenities found in North America are also attainable in Costa Rica and then some. San Jose and its surrounding suburbs boast of fine restaurants and fast food joints (including the ever popular Taco Bell and Rosti Pollo); top of the line malls; great bars, hotels and entertainment that is unparalleled by nearly everything else imaginable. Most of those whom I know that grew up in more rural locales throughout the United States find it difficult to come back home from Costa Rica. Once there, many decide to make this country their second home. Even before the advent of an offshore sports betting industry, Costa Rica was thought of as a haven for retirees and wealthy North Americans.

What Costa Rica offers in abundance, Belize lacks almost entirely. Herein lies the problem, especially when it pertains to the free spirited "-life-on-the-edge" folks who make up this industry. Belize has very few fine restaurants and one would be hard pressed to locate even a McDonald's. In fact, Belize appeared completely devoid of any fast food establishments when I visited just over two years ago. What's a Taco Bell?

The park that houses wagering call centers and online gambling establishments sits a good thirty miles outside of a run down Belize City that in only a four year time span has experienced three major hurricanes.

Anyone who has ever taken long drives through the Pine Barons of Southern New Jersey may quickly get a feel for what this country is all about. Now that is not to say that Belize lacks any form of entertainment and fine beaches. Some of the finest beaches and scuba diving can be found within this country of nearly 700,000 people, however, in order to get to the beaches one must drive a half hour to a tiny airport, board a very flimsy propeller jet for another twenty minute flight (great aerial view of Belize City and its tin roof shacks), then land in San Pedro where the only mode of transportation is by golf cart. I will say this about that tiny regional airport (the size of a gas station), it is by far more efficient than the country's international airport, which when you really think about it is kinda scary. Most of Belize's beauty lies within the scatters cayes off its precious coast. The cayes you can only get to by boat and I suspect that will take at least another twenty minutes.

For those used to the dozen or so gentlemen's establishments located in and around San Jose, Costa Rica, with their freshly imported talent on a near weekly basis, Belize will take quite a bit of adjusting. There are two such clubs, one of which is located nearby the eCommerce park.

Raul's is a filthy scaled down version of San Jose's super popular Hotel Del Rey. A small gathering of girls wait eagerly at the bar while others dance up on stage. In between is an open air seating arrangement complete with a mix of locals and left over British military personnel (the country used to be known as British Honduras up until several years ago). I got a kick out of asking one of these drunken post pubescent boys how the weather was back in Scotland.

I was told that the owner, Raul, ships girls in from neighboring Honduras and provides housing for them with makeshift tiny rooms the size of walk-in closets towards the back of the wooden building. God forbid if there was ever a fire all these whores would be dead since there are no clearly marked fire exits, sprinkler systems or alarms?.not to mention the fact that the nearest fire department is a good half hour away.

The women dance and have sex with patrons in back rooms. They would have to pay ME to go back there! Whatever little money the ladies make from the notoriously cheap locals supposedly goes to both Raul and his wife. Raul's wife is a seamstress who forces the women to wear her hand made outfits while charging them a very steep price. I guess they are supposed to be thankful just to receive room and board. Alas, all you gentleman looking for the high end beauties that stream in from such hooker plentiful regions as the Dominican Republic and Columbia, you're out of luck. They won't be found in Belize, and that should tell you all something about this country's downside when it comes to the talent pool.

Black people who have primarily emigrated from islands in the Caribbean make up a good portion of the population in Belize. Black men traditionally love a thick woman so when this really heavy set big assed behemoth jumped up on stage and these guys seated in the front row started hooting and hollering, I knew I was in trouble. My two female companions sat beside me and this half naked over developed woman comes running down off the stage to take turns giving them both lap dances. I got up and ran, wanting no part of this torture.

Running to the bar was a useless sojourn as the only beer available in Belize is their national brand, Belikin. It's a cross between Costa Rica's Imperial beer, Rolling Rock and sewer water, though the later two are pretty much one in the same.

I remember starving one night while pent up in the eCommerce park. They had no food there and I could not wait to get back to my hotel and eat. Now in addition to there being very little in the way of any top quality restaurants located in Belize, there are far fewer hotels as well. One has a choice between the Radisson and a much larger more tourist popular Crystal Palace Hotel (owned apparently by a cruiseliner). I chose the Crystal Palace, which features the country's only movie theatre (showing Charlie's Angels all the nights I was there) and a gaudy, but pretty decent sized, casino. The rooms were comparable to a Motel 6 (not that I've ever stayed in one, but my room was a bit on the dingy side) and NO 24 HOUR ROOM SERVICE! The outside windows were covered in mud, apparently from a major hurricane that had hit two months prior. I will say this about the Crystal Palace: they were in the process of upgrading and constructing a huge outdoor pool complete with a swim-up bar, something that always wins me over even if I am forced to drink Belikins.

Now I was unaware of the dangers that envelope Belize City until World Sports Exchange founder, Jay Cohen, informed me that his former partner, Hayden Ware, had gotten mugged while visiting there - not once, but TWICE -?.and this was in broad daylight.

Besides a can of mace, bring some heavy duty bug spray. While America's national bird may be the Bald Eagle, Belize's national bird is the blood sucking mosquito. Mark my word they are not endangered either.

While the eCommerce Park may be in a remote location, I will say the buildings are well constructed, comfortable and nicely spread out throughout the region. There is plenty of room for expansion and even in 2000 the internet connectivity seemed acceptable considering the rest of Belize had minimal access and there was some guy in government who, I was told, regularly sabotaged the networks. The park is a creation of Mr. Glen Godfrey, Belize's former Attorney General, and he did have some staunch critics in the opposing political party. The online capacity and phone lines have vastly improved since the time I was there according to those operators currently based in Belize. Sure it reminded me a bit of all those photos I've seen of the Jim Jones compound in Guyana, but at least I knew this place had working phones in case I needed to escape.
 

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Until now the country hosted few sports book or online casino operators at any given time. During my brief visit there were only a handful consisting of Loose Lines (now owned by Jazz in Costa Rica), Internet1x2, Chartwell Technologies and Belize's flagship sports book, Carib. The later expressed a desire to keep all other books out of Belize in fear that the park might become another hotbed of scrutinized activity similar to that found in Costa Rica's Office Centro La Sabana district. Carib also loved the idea of operating outside of the radar since Belize at that time could still be considered uncharted territory and probably still is.

Others had already come and gone prior to my arrival. Belize International (now Buckeye Sports) and Delmar came and went faster than a dog in heat. Delmar's owner would later express to me that his mostly American bet takers were starting to go stir crazy from the lack of things to do in Belize. Some of the locals even happily departed with him to nearby Costa Rica.

Belize can be a depressing place to reside, especially if you have to go it alone. The week before my arrival tragedy struck three men operating online casino businesses from the country. Two of the individuals from an Internet casino - the name of which escapes me at the moment - had to be medevaced after a serious car crash (the driver suffered permanent paralysis). The other man, a senior executive for Chartwell Technology, was involved in a fatal motorcycle accident when he crashed his Harley Davidson into the median of a traffic circle while driving at a fast rate of speed. Those familiar with the two incidents suggested that drugs may have played a key role in both. To be quite frank, there is really little else to do in Belize accept booze and drugs. I guess the whole idea is to snort a little cocaine and the women who might otherwise be seen as 3's and 4's on a rating scale of 10 become 5's and 6's. Unfortunately, the drugs in Belize are not powerful enough to create that type of illusion.

Seriously though, the people of Belize are an upside to this otherwise depressed region. They are friendly, speak good English and the pay scale is equivalent to that of Costa Rica. In some respects the work force is quite skilled and underutilized.

Now the folks from Carib may want "low profile", but they probably won't have a choice in the very near future. It has been confirmed that BetonSports just acquired two of the eCommerce park's largest buildings for what they are classifying as a "mirror operation". Many suspect BetonSports has more grander plans, though it is highly doubtful they will completely abandon their 120,000 square foot Costa Rica based office space any time soon. Should BetonSports invest heavily in its Belize operation, it is anticipated they will follow up with possible entertainment venues such as the VIP Club they now maintain atop bustling Mall San Pedro in Costa Rica.

Four other sports betting companies are rumored to be moving to Belize as well and this could help drive development within the region.

I had a chance to meet with Carmita L. Wilson, Supervisor of Providian Bank while in Belize. This financial institution is widely utilized by offshore gaming ventures, though publicly they try to disassociate themselves with the industry as this could cause a riff in their relationship with New Orleans based correspondence bank, Hibernia. Provident Bank is owned, at least partially, by Glen Godfrey.

Also of interest, the bank holds a Class A license. What this means is that Provident can only conduct business with companies outside of the country (you must be a nonresident). On September 1998 they started with zero deposits, and by the time of my visit, they had already compiled fifty seven and a half million dollars in deposits. Not too shabby!


Wilson steadfastly denied Provident's dealings with gaming enterprises though he was resigned to the fact that many offshore businesses use the financial institution for purposes that may or may not include gambling related transactions. His position appeared to be one of "Hands Off"?.just as long as he had his hands on the money I suppose.

Interestingly enough, what makes Belize an attractive haven for offshore gamers is its apparent resistance to U.S. policy related to Internet gambling. This is the primary reason why many operators choose to conduct a good portion of their banking here.

While in Belize I also had the opportunity to meet with Mr. Cresencio Sosa, Permanent Secretary, Minister of Investment and Trade in the capital city of Belmopan, one of the most desolate towns I have ever stepped foot in I might add. Here you will find a stretch of homes and government buildings; a one hour drive outside of Belize City up the main highway where citizens still feel safe leaving their doors unlocked at night. It's doubtful even criminals would want to find this place, so it makes sense for the citizens of Belmopan to feel safe.

How refreshing to enter a government building without having to trek through a metal detector or succumb to the humiliation of being hand searched and having one of the security guards wave that nasty noisy little wand all up and down my crotch. A site all too common perhaps in cities throughout the United States, but no need for any of those displays here in Belmopan.

I met with Mr. Sosa in the confines of his third story office. Once seated, a customary practice for officials and businessmen alike is to hand out a personal business card. The Permanent Secretary was well prepared to explain his government's stance on offshore gaming's establishment in the Free Trade Zone of Belize.

"With Globalization we need to attract capital investment," said Sosa, "For small developing countries such as Belize, foreign assistance is not like it used to be. The government (of Belize) felt this (Gaming) was an area where we could become involved."

Mr. Sosa explained that after some initial research, a committee made up of representatives from both the government and private sector was immediately set up. This then allowed for transparency in how licensees would be considered.

"It is clear that the situation is not one of revenue raising," Mr. Sosa explained, "Rather it is a desire to have positive effect on employment."

He also went on to describe the mission of Datapro, a company which helps to orchestrate the setting up of businesses in the Free Trade Zone outside of Belize City.

"With Datapro it is a matter of developing a zone and allowing businesses to operate there and they must apply to the Ministry. Proper screening must be conducted. The success of the program has been such that the number of companies that have applied has increased rapidly. Developers must work to keep expansion going."

Mr. Sosa then made a quick phone call to confirm that a total of 60 companies were registered with the Free Trade Zone of Belize as of January 30, 2001, and that number I am sure has grown since.

"Most pleasing to me has been when I see young people working there (in the Free Trade Zone)," said Sosa, "When I see young people at graduations, I wonder where they will be employed. Most of those who are employed have been female and giving the opportunity to both youth and females is what gives me the greatest satisfaction."

Mr. Sosa went on to explain that it is the government's responsibility to act as facilitators.

"The transfer of technology is important but also emphasizing idea technology helps us globally. Our sugar and banana industry (once key to the economy) is now dying."

The Belize government remains committed to bringing foreign businesses into the country. Where gaming is a concern, Government stands behind this potentially lucrative sector while Datapro acts as the engine which executes it.

"This (the gaming industry) gives us an opportunity to be competitive and to survive," commented Sosa.

When asked whether his government may some day succumb to the greed and pilferage that has plagued other gaming jurisdictions such as Antigua, Mr. Sosa insisted this would never happen in his country.

"Belize obtained independence in 1981 and as such we are classified as a "newcomer". We embrace tourism, among other things. We embrace diversification, but have learned from others. Belize would have missed the boat if we did not learn from Antigua. This government's modus operandi is to always be in consultation with all parties involved whether that be Government, Private Sector or Civil Society. There are no intentions to change legislation as it stands now."

Mr. Sosa finished with a powerful statement: "We are not businessmen; we are facilitators. Let industry regulate itself."

And it is this attitude that has many considering Belize, despite its obvious flaws when it comes to standard of living With a little tender love and care (not to mention a few imported Columbian women) and some pretty potent mosquito repellent, Belize might have excellent potential. After all, Carib and Internet1X2 (Net Games) remain there more than two years now, so the country must be doing something right to keep them satisfied.
 

Dogfish

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looked into moving to belize last year on the dual citizenship plan.many tax benifits if you show about $1,500 a month income they treat you quite well.cost of living is cheap and so is the rum!!!!
 
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