Casino to open in 2018
According to a report in the Cyprus Weekly, three global gaming giants appeared to be in the running for a casino license in Cyprus. They included Bloomberry Resorts, owner of Solaire Casino in Manila’s Entertainment City; U.S.-based operator Hard Rock International, which is owned by the Seminole Indians of Florida, which recently announced expansion in the Dominican Republic; and Macau operator Melco Crown Entertainment Ltd.
But a day after the report, Melco Crown denied it saying it had no interest in the Mediterranean island.
Melco Crown had not been listed in previous media accounts of the bidding pool. A source told the Weekly that the company, which is heavily invested in Macau, will welcome opportunities to diversify as Macau’s industry endures an almost two-year recession. “Even though Macau’s casino earnings are still several times more than what Las Vegas makes, it’s obvious to the companies that they need to diversify, and Cyprus should make use of this opportunity,” said the source.
On the surface, it made sense. Melco has expanded beyond Macau into the Entertainment City project in Manila, Philippines, and a casino near Vladivostok in Russia. The company also has an ongoing interest in an integrated resort project in Barcelona, Spain. But Melco Crown’s denial ended all speculation. And given that the claim was the result of an unnamed source, not the government, it was immediately discounted.
On Cyprus, most connected sources had indicated that not only Hard Rock and Bloomberry but also French communications and construction firm Bouygues, which specializes in online gaming, were the finalists. All three were part of the original eight bidders.
The field of contenders was narrowed from a dozen to eight serious bidders and then to the final three, Commerce Secretary Stelios Himonas said. Each of the bidders paid €10,000 (just under US$11,000) for the chance to participate. Malaysia’s Genting and South Africa’s Sun International bowed out of the process at about the midpoint; other companies that expressed interest included NagaCorp, which operates NagaWorld in Cambodia and is building an integrated resort in Vladivostok; Absolute, a Russian company that formerly ran a casino in Russia; and Sun International, a resort hotel and casino chain with extensive interests in South Africa.
Himonas told a joint session of the House Finance and Trade Committees that the formal evaluation process has begun. “We will be ready in a month to proceed with the proposal for the three.”
The European Commission is evaluating the proposed regulatory framework, and submitted questions about the protection of personal data and restrictions on free movement of gaming equipment, reported the Cyprus Mail. The publication reported that Himonas “urged deputies to speed things up on their end.”
Further questions came from Finance Committee Chairman Nicolas Papadopoulos, head of DIKO, the Greek Democratic Party. He asked if the companies had sufficient capital to build a deluxe Mediterranean resort. Himonas said, the three bidders “will be invited to present evidence” on the funding plan. “Details concerning financing and sustainability are of extreme importance,” he said. In the interim, the companies will submit their detailed project proposals. Trade Committee Zacharias Zacharias said the House could adopt formal regulations sometime this month.
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 first integrated resort in the southern part of the Mediterranean island must offer a minimum of 100 gaming tables and 1,000 gaming machines. 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, is expected to boost tourism and create some 25,000 new jobs.
