Which entity will obtain Greece's Hellinikon Casino permit?
The Greek gambling regulator, HGC (Hellenic Gaming Commission), revealed that US casino giants Hard Rock International (based in Florida) and Mohegan Gaming & Entertainment (from Connecticut) have submitted applications for the Hellinikon casino license. The casino is situated at Athens Airport, which closed in 2001. The Greek government is currently holding a tender to choose an international operator for the venue. Which company will come out on top in this race?
Appealing Project for Foreign Investors
Hard Rock and Mohegan are two major gambling entities that have pursued the Greek Hellinikon casino license. The casino is located at the airport of the same name on the outskirts of Athens, and the site has been closed for over 18 years. A major transformation of the airport is currently taking place, costing over 8 billion euros. As a measure to find the right operator, HGC has launched a global tender, with the victor receiving a highly sought-after license that lasts 30 years.
The presentations from the corporations were done in a grand manner, with the Hard Rock representatives dressed in the brand's T-shirts, exhibiting the words "Hotel & Casino Hellinikon." Limousines carrying the executives from both Hard Rock and Mohegan soon arrived. The organizations handed over sealed suitcases with logos containing their concepts and proposals. The proceedings met with approval from the authority. HGC's Chairman Evangelos Karagrigoriou acknowledged the development, calling it "a milestone for the success of the new Greek licensing system" and a signal that "Greece is attractive to foreign investors." The chairman shared further in a press release:
"Today is a milestone for the implementation of our iconic investment at Hellinikon and, most especially, for the implementation of a world-class tourism and leisure destination. In line with the standards we have set in the tender, the integrated casino resort will contribute significantly to the Greek economy."
Hard Rock's VP and Finance Supervisor, John Edgar, has also expressed satisfaction at the bid by stating, "Today is a major day for Greece and Hard Rock International is very delighted to submit its bid for the integrated casino resort."
A Massive Construction Project
The 8 billion euro restoration of the old Athens airport is an immense undertaking and is currently the most extensive urban development project in Europe. The site spans over 620 hectares and is three times the size of Monaco. For most of the year up to January, the ruins were in a neglected state, but the plan now is to build a luxurious gaming and amusement complex.
The casino area will contain 15,000 square meters and boast 120 gaming tables and 1,200 slot machines. A 5-star hotel with at least 2,000 beds is also planned. Furthermore, a shopping center, theater complex, upscale dining establishments, a museum, and 8,000 apartments are all in the works. Finally, construction will include a harbor on the Mediterranean coast.
The Greek company Lamda Development holds responsibility for the project, working with international firms like Foster + Partners, Charles Anderson, Arup, the Chinese group Fosun, and the real estate group Al Maarbar from Abu Dhabi. The renovation will necessitate 70,000 employees.
Licensing Requirements
Last year, Greece revised its licensing regulations, which will play a part in the awarding of the operator license for the new resort. In this context, multiple other renowned brands also filed license applications. These include Caesars Entertainment from Las Vegas, Genting Group from Kuala Lumpur, and Groupe Lucien Barriere from Paris.
Obtaining a license hinges on various economic and technical requirements. The entry fee is at least 30 million euros, as well as annual fees. Applicants must have equity contributions totaling a minimum of €200 million based on the most recent three financial years. Additionally, at least €400 million in annual revenues must have been made within the same period.
The investment commitment for the conversion is around €500 million. Technological concepts are central to the selection process. According to HGC, the economic assessment is crucial and makes up 60% of the evaluation, while the technical concept accounts for 40%.
The prospective complex is a worthwhile investment. It holds a prime location just 10 kilometers from the 4 million-strong Athens metropolis and is near the Mediterranean Sea. Greece's gaming market is presently experiencing significant growth. The Greek populace invested an impressive €17 billion in gambling during 2017/18. That figure saw a staggering 9% rise from the previous financial year.
Thus, it will be captivating to observe which of the numerous high-caliber applicants ultimately wins the race. According to the HGC, the evaluation process will take about six to eight weeks.
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Source: www.onlinecasinosdeutschland.com
