Hard Rock's proposal for Hellinikon development rejected.
The Greek gaming authority HGC (Hellenic Gaming Commission) has voted unanimously to reject the Hellinikon proposal made by Florida-based gaming and entertainment firm Hard Rock International. Consequently, Hard Rock will be overlooked in the next phase of the competition. The organization was infuriated and is considering filing a lawsuit. Let's discuss what transpired.
HGC's Objections "Ludicrous"
In line with a warning from the Greek HGC last December, Hard Rock's application for the Hellinikon casino license was disapproved. As per a committee's report, the organization is henceforth omitted from all future licensing endeavors. This results from severe discrepancies and abnormalities regarding the financial warrant guarantees and the necessary proof of experience in the establishment of casino projects. Consequently, the authority should brace for litigation from Hard Rock. A representative from the local firm, Michael Karloutsos, informed The National Herald newspaper:
"It's utterly foolish to assume that Hard Rock doesn't have the requisite financial aptitude and construction skills to complete the project in Hellinikon. If this report is correct, I'd suggest the committee and the commission are at a loss since they seem to be talking about our opponents."
"Persist till the End"
Karloutsos was clear that Hard Rock won't tolerate the HGC's decision. The firm has regularly stated that "Hard Rock will persist in this process until its conclusion," including any legal action that might be needed if the project is stalled. In the previous three months, Hard Rock has invested more than 2.2 billion USD (~ 1.9 billion EUR) in the realization of the casino project.
In the same breath, Karloutsos criticized his principal rival Mohegan Sun, which is "under financial adversity" because of heightened competition in the sector and isn't "as involved" internationally. According to the Hard Rock spokesperson, there were also "media leaks" that hindered the process from the get-go. This suggests that the bidding was skewed in favor of Mohegan. The statement continued:
"Even our supposed disqualification was disclosed to the press before Hard Rock received any formal communication from the government. We're still uncertain if this is true. These leaks gravely harm the Greek people."
Karloutsos emphasized that Hard Rock, with operations in 75 countries, owns the "most successful casino business in the Western Hemisphere apart from Las Vegas." Additionally, Hard Rock had remained constant in Greece through its franchise dating back decades. He added, "Hard Rock was here during a period when no one was interested in investing in Greece and Greek businesses were fleeing for safer environs. That's the kind of business we need in Hellinikon and the type of ally Greece needs for its future."
Considering the discontent displayed, Hard Rock is likely to file legal action. Initially, the Greek authorities were threatened with taking the case to the "European Court of Justice." The outcome of this is yet unknown.
Exceptionally High Licensing Criteria
Ever since October 2020, the contention for Greece's Hellinikon casino license has been unresolved. If recent reports prove accurate, only the American casino conglomerate Mohegan Sun is still part of the competition. Several financial and technical prerequisites were set beforehand for the license. The entry fee alone surpasses 30 million EUR, and yearly fees apply as well.
In addition, bidders must possess over €200 million in shareholder equity based on the last three fiscal years. At least €400 million in gross sales should have been achieved within the previous three years. The investment commitment for the transformation approximates €500 million. Likewise, the focus is on the technical plans, which must be predicated on the applicants' past experience.
It's undeniable that the investment is lucrative: the projected complex is located just 10 km from Athens, home to a population of 4 million residents, and is right near the sea. Moreover, Greece's gaming industry has witnessed noteworthy growth rates. In the 2017/18 fiscal year, the Greek populace invested around €17 billion in gambling. A hike of a staggering 9 percent compared to the previous financial year.
Largest European Construction Project
The €8 billion revisitation of the disregarded Athens airport was the biggest European urban redevelopment endeavor. The site encompasses over 620 hectares, three times the size of Monaco. Until early this year, the ruins remained abandoned, but the development of a lavish gaming and entertainment complex is now proposed.
The gaming area alone will span 15,000 square meters and feature 120 gaming tables and 1,200 slot machines. A five-star hotel with minimum 2,000 rooms is also intended. Several recreational facilities will be established, such as a shopping mall, a theater complex, numerous high-end restaurants, a museum, and 8,000 apartments. The ambiance will be adorned by its own harbor on the Mediterranean coast.
Lamda Development, a Greek real estate company, is behind this enormous project that involves several international firms such as London-based architects Foster + Partners, Charles Anderson, and Arup. Along with these, the Chinese group Fosun and the real estate group Al Maarbar from Abu Dhabi are also on board. The project needs a whopping 70,000 workers and isn't likely to be completed before 2025. However, construction can only begin after a casino license holder is found.
Read also:
- BVB trails 1-0 against Paris, with Füllkrug leading them towards the final.
- Munich Drama: Late Real Penalty Leaves Bayern Shocked
- Lars is capable of leading BVB, according to many.
- Subsequent torrential rainfall leads to 48 fatalities due to partial highway collapse in China.
Source: www.onlinecasinosdeutschland.com
