Europe's biggest casino faces potential shutdown.
A financial crisis has hit the Casino Campione located on Lake Lugano. The public prosecutor's office in Como has filed for bankruptcy proceedings due to the casino's financial insecurities. The main cause of these issues is the high costs and the unique status of the Italian exclave, Campione.
The last year was quite auspicious for the Casino Campione as the casino celebrated its centennial anniversary and the 10th year since their move to a modern architect-designed building by Mario Botta. In 2007, a whopping 50 million euros were invested in this new building, turning a small casino into the largest in Europe. However, these good times are now an old memory, with the casino suffering great financial losses. The municipal-owned casino is now insolvent and heavily indebted, posing a threat to the entire population of around 2,000. Salaries cannot be paid due to the diabolical financial situation of the town.
What came as a shock to the residents was the news that the Como public prosecutor's office had initiated bankruptcy proceedings. According to Roberto Salmoiraghi, the municipal president, he only found out about this situation late in the evening of January 12th and immediately called for a public meeting in the casino on the following Sunday. In the meeting, he informed the approximately 200 people present of the casino's insolvency and their town's dire situation. One astonished attendee commented, "We are probably the only casino in the world that is on the verge of bankruptcy with a gross gaming revenue of 92 million francs."
Cost-cutting measures to counteract the crisis
The casino's revenue has remained fairly stable in recent years. They were even talking about considering the construction of another casino tailored to Asian tourists. Unfortunately, those plans are now on hold. The casino still has a favorable position with very few competitors in Italy and its picturesque location near Lake Lugano attracting many tourists. It has been profitable so far. The problem lies in the fact that Campione is a unique Italian enclave within Switzerland, forcing the casino to use Swiss francs as its primary currency. However, they generate their profits in euros but have to pay fixed taxes to the town in francs, which have become more expensive due to recent exchange rate fluctuations. The casino has experienced huge losses since 2012 and now owes the Banca Popolare di Sondrio 40 million francs (approximately 34 million euros).
The bank unsurprisingly refuses to grant any more loans. The president, Roberto Salmoiraghi, is left with the difficult task of finding a solution. He announced several cost-cutting measures at a municipal meeting, including pay cuts for everyone (20% reduction) and a reduction in the number of town employees. From a town of 2,000, 100 people are employed - a massive number considering its size. It seems the "boom" times may have led the council to be too generous with hiring. Nevertheless, it remains unclear whether there will be any layoffs among the casino's 500 employees. The president pointed out the poor work attitude from some of them - too many sick days in 2017.
However, Salmoiraghi has his doubts about whether these measures will avert the possible bankruptcy. As long as there are no changes to the taxation system in Swiss francs, the casino will remain hugely dependent on exchange rate fluctuations. But if the once overvalued currency were to depreciate, the fortunes of the casino and the municipal could change drastically. The town's fate rests on the inherent volatility of money.
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Source: www.onlinecasinosdeutschland.com
