Casino di Campione intends to reopen.
Back in 2018, the bankruptcy of the massive Casinó di Campione robbed the Italian enclave of Campione d'Italia of its primary source of income, making international headlines. The ordeal left 500 casino employees jobless and over a hundred city employees without work; however, the region seems to be bouncing back with the casino scheduled to reopen.
Cost reduction Measures
The Casinó di Campione, Europe's largest casino and Italy's oldest, is reportedly set to reopen its doors as early as next September. The casino has supposedly cut down on its expenses and plans to start with a staff of 170 employees. To avoid further bankruptcy, the casino won't seek financing or loans from external investors. The debts of Campione d'Italia, which had been dependent on the casino since decades, amounted to approximately 4.5 million euros in June 2019, while the casino itself struggled under a debt mountain of around 130 million euros.
Internal Recovery
In an effort to avoid a repeat of the debt debacle, the Italian enclave bordering the Swiss canton of Ticino, switched over to the EU customs territory and secured a massive loan from the Italian government. The municipality's finances have taken a hit as Italy has significantly reduced payments to the city with around 2,000 inhabitants.
The casino's management company submitted a restructuring plan under the guidance of the bankruptcy court. The plan details specific dates and figures with the intention of fostering sustainable growth economically. The casino will pay off its debts from its earnings, ensuring no external funding is required.
Tracing back to 2018, the 50 million euro, ten-storey casino on Lake Lugano was forced to close down following permanent bankruptcy. Bailiffs locked up the property owned by the province of Como. Consequently, 500 employees lost their jobs and the casino's doors were officially sealed shut. Residents of the municipality celebrated their famous casino's centenary only 11 years earlier in 2017. Sadly, a brand new, high-tech establishment designed by Swiss renowned architect Mario Botta was being targeted by bailiffs. In 2018, the casino had debts of 155.6 million euros, while Campione had a financial deficit of 124 million euros.
Possibility of Success
In this restructuring plan, the debts of Campione and its casino are projected to be paid off completely by 2027. Employee numbers are also set to increase to about 270 by 2026. The location is a deciding factor in the casino's success as it lies in an advantageous position to cater to clientele from both Switzerland and Italy. With fewer than four casinos in Italy - Sanremo, Venice and Saint-Vincent - Campione's card-based regulations permit a more lenient approach.
The cost-cutting measures are also expected to help the situation. For instance, the catering service, which previously generated heavy fixed budget costs with little profit, has been discarded. The reduction in yearly city contributions is significant since these payments contributed to the debt loop with delays. Insiders are optimistic about the potential success, anticipating an increase in profits after the easing of lockdowns. The main factor to consider is the casino's strategic location.
What Does the Future Hold?
With hopes of recovery and renewed confidence, the reopening of the casino could be a much-needed lifeline for Campione. The closure drastically affected the community, leaving many without income for extended periods. Even food became a luxury for some. The old people's home, kindergarten, and tourist office were shut, and only essential rooms in the school were heated. People hung banners declaring their location as a "SOS - Campione is DEAD" on the promenade. The employees and locals even protested in the district of Como. Although the casino's anticipated reopening in September could mark the end of their ordeal, their faith in the future is still a cause for concern.
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Source: www.onlinecasinosdeutschland.com
