Punta Cana Casino Development, 2000–2006

By 2000, Trevor Erlank had moved his attention toward the rapidly expanding tourism market in Punta Cana, Dominican Republic.

On 11 April 2000 he entered into an agreement with Manuel Vallet Garriga, representing Catalonia Bávaro Resort, to develop a casino through Inversiones Azul del Este Dominicana S.A. The project involved approximately 500 square metres of casino space, required approximately US$500,000 in contract security and carried monthly rent of approximately US$50,000.

Construction was completed in approximately six months. The completed casino was equipped with approximately 150 slot machines and 10 gaming tables. The physical casino was ready, but regulatory approval delayed the start of operations.

The timing of the Punta Cana expansion proved challenging. The terrorist attacks of 11 September 2001 caused a major disruption to international aviation and tourism.

Caribbean resort destinations depended heavily on international visitors, particularly tourists travelling from North America. For a new casino operation carrying significant fixed costs and capital investment, the sudden decline in international tourism created substantial commercial pressure.

In 2002, Erlank acquired and rebuilt the Riu Palace casino in Punta Cana. The historical operating figures for the casino were approximately 15 gaming tables and 200 slot machines.

The redevelopment involved casino design, construction and the creation of a large resort gaming operation. The casino became associated with the Sky International casino group, operating through Grupo de Casinos Cielos Internacionales S.A.

A Dominican Supreme Court judgment provides independent historical documentation concerning Grupo de Casinos Cielos Internacionales and the Riu Palace casino operation, and records the later termination of the group's Riu Palace casino contract in 2005.

During the same period, Erlank entered into an operating agreement with Breezes Resort in Punta Cana. The casino operated with approximately 8 gaming tables and 100 slot machines.

Rather than operating a single property, Erlank was now involved with multiple resort casinos within the same international tourism market.

On 7 February 2003, Erlank entered into an agreement with Don José Manuel Molina de la Espada, representing the Fiesta Hotel Group, to develop and construct a casino in Punta Cana through Cielos Internacionales. The Fiesta casino operated with approximately 12 gaming tables and 120 slot machines.

By this stage, Erlank's experience covered much more than casino ownership. It included casino development, construction, gaming-floor planning, equipment installation and operational management.

In August 2006, Hurricane Ernesto affected the Dominican Republic, disrupting infrastructure and tourism activity in the Punta Cana region. The casino business was also affected, and insurance issues subsequently added another layer of difficulty, contributing to a prolonged period of disruption to trading.

The experience highlighted another challenge of operating casinos within tourism-dependent markets: natural disasters can have a direct effect on both tourism and casino revenues.