Sole bidders in a once-crowded field
A partnership of two global gaming giants—Melco International of Hong Kong and U.S. operator Hard Rock International—has been officially approved for a gaming license in the Greek-controlled Republic of Cyprus. The global operators are partnering in the venture with local agricultural firm Cyprus Phassouri (Zakaki). Deputy Minister Constantinos Petrides told the Associated Press that a final assessment of the consortium’s successful bid has to be completed and the license will be issued by the end of the year.
Melco-Hard Rock was the sole bidder for the license after Cambodia’s NagaCorp Ltd. and Philippines-based Bloomberry Resorts withdrew in September; originally the list of contenders numbered eight. The final two bidders dropped out when they could not find a suitable casino site on the Greek side of the island.
According to the Cyprus Ministry of Commerce, “following the evaluation of the application of the participant in the licensing process of the integrated resort casino in Cyprus, the coordinating committee decided that the submitted proposal of the consortium Melco-Hard Rock Resorts Cyprus meets the requirements” of the government, which demanded an integrated resort with at least 500 luxury hotel rooms, 1,000 gaming machines and 100 gaming tables.
According to the terms of the deal, the partners can also build a satellite casino and three slot parlors to generate revenues while the resort is in development. When due diligence is complete, “the permit will be issued,” the ministry said.
Hard Rock International CEO Hamish Dodds has said the project “will surpass the government’s expectations. State income will increase, thousands of jobs will be created and, once implemented, this project will put Cyprus on the global tourism map.”
The license has a 30-year term and comes with a 15-year monopoly on operations in the island republic. Undersecretary to the President Constantinos Petrides said construction on the development is expected to start in the first quarter of 2017.
A statement from Melco-Hard Rock said the consortium “welcomes the decision and looks forward to collaborating with the Cyprus government to meet the set targets and establish a world class integrated casino resort that will be highly beneficial to the economy and tourism of Cyprus.”
