The Greek government is struggling to revive its economy and apparently is planning to revive its downtrodden gaming industry.
A call for tenders for a resort development at the site of the former Ellinikon International Airport in Greece may go out in May or June of this year.
That’s the news from local news outlet Kathimerini, which also reported that Las Vegas casino giant Caesars Entertainment has expressed interest in operating a casino at the major complex, planned to be built in Elliniko, a southern suburb of Athens.
Last summer, the Greek government approved the construction of an $8 billion integrated resort at the site of the airport. The land was the Athens-area international airport until 2001, then hosted facilities for the 2004 Summer Olympics.
The redevelopment will be undertaken by Abu Dhabi and Chinese investors including Chinese conglomerate Fosun and local partner Lamda Development. The investors must receive final approval from the Council of State before proceeding.
U.S.-based casino giant Caesars Entertainment is the only global operator to express interest in running the casino, but analysts say more bidders could fall in line over time.
Lamda Development has previously said that more than 10,000 jobs will be generated during construction, and the finished resort could create more than 70,000 jobs. But its impact may be constrained by the development of Melco Resorts & Entertainment’s Cyprus casino resort in the early 2020s.
Lawrence Ho’s Hong Kong-based company is planning to invest €500 million (US$650 million) in a multi-purpose casino complex in the Cypriot city of Limassol, about an hour’s flight from Athens. City of Dreams Mediterranean could be “one of the best in the world,” according to Cyprus President Nicos Anastasiades.
It could also be a big moneymaker, pulling in up to $838 million per year, or around 4 percent of the Cyprus economy.
“Our government’s aim is the creation of a complete casino resort that will be paramount in Europe,” Anastasiades said.
City of Dreams Mediterranean will be built by a consortium made up of Hong Kong-listed Melco Resorts & Entertainment and its local partner, Cyprus Phassouri Ltd. Melco says the resort will be Europe’s largest with 136 tables; 1,200 gaming machines; a five-star, 500-room hotel, 11 restaurants and cafes; and a 100,000-square-foot convention center.
Meanwhile, the government of Greece has initiated a broad liberalization of the country’s casino market in hopes of attracting international interest in three new gaming licenses on the islands of Crete, Mykonos and Santorini and a proposed resort complex near Athens that will feature at least one destination-scale casino.
Reports are that the Finance Ministry is working with a consultant on the drafting of a tender for the Athens project, planned for a site formerly occupied by the capital city’s Ellinikon International Airport.
News outlet Kathimerini reports that the government’s Council of State will begin reviewing the plan this month and that a call for bids for the casino license could be issued as early as May or June.
It’s estimated the project could employ 10,000 workers just in the construction phase and generate more than 70,000 jobs at full build-out.
As for the gaming portion, Deloitte says it could ultimately generate gaming revenue in the neighborhood of €700 million, or US$860 million-plus at current exchange rates.
What isn’t known is how the project will affect the substantial investment Melco Resorts & Entertainment is planning for an integrated resort with a casino on the island of Cyprus―a €500 million project, priced over the long term, with an opening slated for early in the next decade.
The same may be assumed to apply to the licenses earmarked for Crete, Mykonos and Santorini.
What is known at this point is that the Greek government is committed to making the country a friendlier place for gaming operators than it’s been in the past.
Measures include a new tax system capped at 20 percent of annual gaming revenue up to €101 million and scaling down to 15 percent of revenue between €101 million and €201 million, 12 percent of revenue between €201 million and €500 million and 8 percent above that.
The same legislation abolishes entry fees and includes a provision allowing operators to extend credit exceeding €50,000 to select customers.
In line with the new spirit of liberalization the government has cleared Regency Entertainment, one of the largest operators, to move its Athens license from Mont Parnes to a location closer to the metropolitan area.
“This is good and welcome legislation after many years of misery for our industry,” said Regency COO Ian Gosling. “All we can now hope for is for Greece to start having solid GDP growth, which is around the corner, and things will most definitely look brighter.”
Also, a high-ranking court of appeals has come to the rescue of the country’s struggling Club Hotel Casino Loutraki, ruling the property may be owed up to €70 million dating back to 2008 because the government erred in nearly doubling its tax rate back in 1996.
Greece’s nine-casino market peaked in 2008 at €744.5 million in gaming revenue but then plummeted by more than 60 percent over the next five years. It continued to fall through 2017, dipping by 3.2 percent in the first half to around €120 million.
