No, the character is a pimp in this movie.  It's an Italian horror movie from the 80s.  This actor is in the sequel, but he plays a different character. 

Spaghetti Freddy

Silent Hill for the PS1 has a building modeled after the one in this movie.

Is it considered a Giallo film?

Is it by Argento?

It was co-written and produced by Dario Argento, who is known for Giallo
films, but this movie is not considered to be one of them.

Demons?

Yes! 

Ajimbo wrote :

Yes! 
-end quote

Oh thank god! haha I could probably count the # of italian films I've seen on one hand.

The Laurel and Hardy Babes in Toyland.