Casinos in GRC seek financial assistance.
Greece's casinos have been severely hit by the coronavirus lockdown and are requesting financial aid from the government. Their revenues have plummeted by 75%, and they were already struggling pre-pandemic due to a 2019 anti-smoking law. Can Greece's casino industry recover from this decline?
Request for a 25% Tax Cut
Greece's ten casino companies plan to reopen between July and September 2020 but are on the brink of financial collapse. Their earnings have dropped by around 75% due to the virus outbreak, making them desperate for assistance. The industry has now turned to the Treasury for help.
In a letter to Finance Minister Christos Staikouras, his deputy Apostolis Vesyropoulos, and the President of the Greek Gaming Commission, Evaggelos Karagrigoriou, they request a tax reduction to secure the industry's liquidity during the reopening phase. Eight out of ten companies are heavily affected by the pandemic—a tax cut could help preserve more than 5,000 jobs. They've proposed a reduction of 25% on the current tax rate of 57% or 20%.
The current situation is made worse by a 2019 anti-smoking law. The operators claim the law led to revenue losses of 25% last year despite growing tourism, and now fear it will negatively impact operations during reopening.
New Licensees Consideration
Since October 2019, a new licensing system has been in place in Greece, offering a much lower tax rate of 20%. But most operators have applied for new licenses but haven't received them yet. The casinos ask the Treasury to consider the exceptional situation.
The pandemic may make it difficult for some operators to meet Greek licensing conditions, including financial collateral between 200,000 and 500,000 euros, and a surety bond. Additionally, some operators can't provide all the necessary data to the gambling supervisory authority.
The operators are asking for an extension of the deadline for submitting license applications until the end of 2020. They believe this period is necessary for them to reorganize and offset losses. They also demand that the industry's taxation remain based on the new gambling law to maintain competition.
Hellinikon Casino Project
Last year, Greece was in the news for its Hellinikon Casino project, and in late January, Mohegan won the license. The US casino giant announced they plan to start construction despite the pandemic. However, the project is currently on hold due to a lawsuit filed by Hard Rock International. The two had been involved in a race for the project.
The final start of the project now depends not only on the Covid-19 situation but also on the court decision regarding the license award. In early January, Hard Rock's application was rejected, partially due to a lack of casino-building experience. Hard Rock recently announced they'll eventually receive the Hellinikon license, but it's unclear if this will happen.
Largest Urban Development Project in Europe
Since March 2019, it was clear an airport in Athens would become a casino. The €8 billion project is the largest urban development project in Europe, covering over 620 hectares and three times the size of Monaco. The site is currently in a poor condition.
The casino area of the resort is set to be over 15,000 square meters and will feature 120 gaming tables and 1,200 slot machines. A five-star hotel with at least 2,000 rooms is also planned, along with leisure facilities like a shopping mall, a theater complex, high-end restaurants, a museum, 8,000 apartments, and a private harbor.
The responsibility for the project lies with Greek real estate company Lamda Development and various international companies involved, include London-based architectural firms Foster + Partners and Charles Anderson. The Abu Dhabi-based real estate company Al Maarbar is also part of the project. The megaproject requires a total of over 70,000 workers and may not be operational before 2025.
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Source: www.onlinecasinosdeutschland.com
