Online also coming
Two of three bidders for the first and only casino license in the Republic of Cyprus may be out of the running because they could not secure land for their proposed projects, according to CalvinAyre.com.
The website, citing local Cyprus media, quoted an anonymous official in the Ministry of Commerce who said Bloomberry Resorts and NagaCorp have not yet closed deals to acquire land for their projects. Moreover, Bloomberry is said to be losing interest in Cyprus because of alleged price gouging by property owners. NagaCorp is said to be still be negotiating with the owners of its preferred site. Bloomberry reportedly was looking at the Paphos area for its planned resort. NagaCorp was said to be going for a property in Lamarca.
The partnership of Hard Rock and Melco is reportedly considering the Limassol area. The team is working with Cypriot agricultural firm Phassouri, according to the Famagusta Gazette. Phassouri has orchards not far from the southern port city.
Bloomberry of the Philippines and NagaCorp of Cambodia received a three-month extension until October 5 to submit detailed project plans. Commerce Minister Yiorgos Lakkotrypis would not comment on the possibility of another extension, but told a parliamentary committee that the goal is to award the license before the end of 2016.
The Cypriot government wants a resort with a five-star hotel with at least 500 rooms, 100 gaming tables and 1,000 gaming machines, for an investment of about €500 million ($US561 million).
“Even now that property prices have dropped, casino companies have been offered land at ridiculously high prices,” an unnamed real estate agent said of the dilemma. “Excluding state land from the casino procedure proved to be a mistake.” Another person familiar with the negotiations said, “There is a real chance Cyprus casino licensing will end up with just one offer and this could prove problematic for Cyprus.”
The winning licensee will have about two years to develop the resort; in the interim, it also will have the option of building a temporary casino to generate revenue. The chosen operator may also develop a smaller satellite casino and a freestanding outlet with just three machines.
The license will be valid for 30 years with an exclusivity clause for the first 15 years. There are currently no legal casinos in the southern part of the republic, which is affiliated with the Greek government; however, several casinos operate in the northern Turkish sector.
The project, approved by the government in August 2015, is expected to boost tourism and create some 25,000 new jobs.
At the same time, the Cyprus National Betting Authority has announced that online sports betting licenses will be available for bid starting in October. The upfront costs may dampen interest, according to some reports.
Starting October 3, the Cyprus National Betting Authority will consider applicants for online sports betting licenses. Though interest in the jurisdiction is strong, there are considerable barriers to entry, including a €30,000 (US$33,000) one-year license fee, though a two-year license includes a cut rate (a total of €45,000).
Operators must be demonstrate that they have €500,000 in ready capital and produce bank guarantees of the same amount. In addition, there is a 10 percent tax on gross gaming revenues and a regulator’s fee of 3 percent of GGR, according to the website Yogonet.com.
Operators do not have to be based in Cyprus to apply, but will be required to have a mirror server on the island and use a local domain extension so regulators may monitor operations.
