Two-tiered licensing framework OK’d
The tender for a casino license at the site of Athens’ former Hellinikon International Airport can move forward in earnest now that the Greek parliament has approved new terms and conditions for casino operations in the country.
So far, three U.S.-based global operators are said to be in the running for the airport license: Hard Rock International, Mohegan Gaming & Entertainment and Caesars Entertainment. Some reports say that the new legislation will also enable the winning Hellenikon bidder to enter concession deals with third parties involving non-gaming attractions, a requirement under a new two-tiered licensing regime approved on December 6.
Under that plan, “single-entry” or simple 15-year licenses will be granted for operations to be located inside four-star hotels. Those operations would include a minimum investment of €500,000 (US$568,000) to start, increasing to €5 million (US$5.68 million) after five years.
“Wide-ranging” licenses for casinos to be located inside five-star hotels will require at least one major non-gaming attraction such as a golf course, meeting or convention center, marina or spa. Wide-ranging licenses will be valid for a term of 30 years and would necessitate an initial minimum capital investment of €1 million (US$1.136 million), rising to €10 million (US$11.360 million) after the first five years.
The airport development is much bigger than that, with officials looking for a large-scale resort representing an investment of €8 billion (US$9.1 million). It would be the nation’s biggest coastal resort and the first integrated casino resort in Europe. The plan for a casino complex at the former airport was approved in February by the Greek Council of State. The project has faced several delays over the past few years, sparking heated disputes between its proponents and environmentalists and archaeologists.
Earlier this year, Games Magazine Brasil called the Hellinikon IRC Project “a landmark opportunity in the as-yet underpenetrated European market, occupying a designated prime location within the Hellinikon, the Kosmas metropolitan area on the site of the Athens former international airport and the adjacent coastal front at the core of the area known as the Athens Riviera.” It said the Greek government expects the development will have “a significant positive impact on the country’s economy.”
In a prior statement on the project, the Hellenic Gaming Commission said the IR plan “reflects the collective vision and commitment to collaborate on the further development and implementation of a sustainable tourism destination” and predicts it will “transform the wider area of Athens and improve the lives of millions of residents and visitors of our capital city, enhance the Greek tourism product and become a growth engine for the Greek economy.”
Commissioners “envisage a world-class integrated resort casino operation as an important part of the Hellinikon, a project destined to transform the wider area of Athens and improve the lives of millions of residents and visitors to our capital city, enhance the Greek tourism product and become a growth engine for the Greek economy,” the statement continued.
According to reports, Greece’s existing casino operators may have to reapply for their licenses by the deadline of December 1, 2019; those approved would be able to take advantage of a new reduced tax structure. The news outlet reported in the past that Greece is “bent on making the integrated resort casino business a reality to assure international lenders that the country has sufficient revenue streams to pay back its debt.” It said the republic has been “on financial life support for eight years after the Eurozone plunged into a deep financial crisis in 2010.”
A legislative amendment was also proposed that would relocate the Regency Casino on Parnitha to Athens’ northern suburbs “to avoid overlapping activities,” said Finance Minister Euclid Tsakalotos. “Essentially we are moving the casino relatively far from Loutraki and Hellinikon. Excluding other options, we are sending it to the north. By excluding these areas, the casino will not come in the city center and next to residential areas, which are totally excluded. At the same time, the casinos of Helliniko and Loutraki will be are minimally affected, protecting the investments there.”
