The withdrawal of Hard Rock International from the €500-million plan for the construction of Republic of Cyprus’ first casino resort has not deterred the progress of the project, a local gambling regulator said.
Christos Mavrellis, President of the Cypriot National Gaming Commission told Chinese news outlet Xinhuanet, that the materialization of the project is progressing smoothly, even though one of the original partners walked out.
Last October, a group of investors comprised of international casino operators Hard Rock International and Melco International Development and local partner CNS Group was selected as the preferred bidder for the construction of the Mediterranean island nation’s first casino resort. Here it is interesting to note that Hard Rock, Melco, and their partner were actually the only bidder to have successfully applied for the necessary approval from Cypriot gambling and financial regulators.
The deal between the group of investors and local officials was signed in late June. Hard Rock, which is the operator of a number of casino properties in the United States and has been looking to expand its global presence, announced that it was pulling out of the agreement on the very next day after it was signed.
Hard Rock sold its stake in the development to its partner Melco, with the latter thus becoming the largest stakeholder in the venture. The Hong Kong-listed company, owned by casino tycoon Lawrence Ho, currently holds 70.74% in what would be Cyprus’ first casino resort. The project has also been touted as the largest one of this kind in Europe.
What Comes Next for Cyprus’ Casino Resort?
As mentioned above, Mr. Mavrellis confirmed that Hard Rock’s exit has not disturbed development process and that work is progressing according to plan. The gambling regulator further explained that a temporary casino will be opened in Limassol, while the main complex is being developed. Limassol, which has become a popular destination for development activity in the island nation over the past several years, will be home to Cyprus’ first casino.
Under the government’s agreement with the approved developer, the latter will also build a smaller-scale satellite casino in the capital Nicosia and three slot parlors in the Paphos, Larnaca, and Famagusta districts. The Paphos and Laranca districts each have an international airport within their borders, and the Famagusta district includes some of Cyprus’ most exclusive tourist spots.
Mr. Mavrellis told Xinhuanet that Melco and its local partner CNS Group will be able to launch the Limassol-based temporary casino and the four satellite properties in the above-mentioned cities once the developers obtain all the necessary town planning and related permissions.
It was reported earlier this year that the main casino floor and the rest of the resort will likely not be operational before 2019. It is yet to be seen whether the developers will be able to meet that deadline.
