Hard Rock International has tossed its hat into the ring for the development of a casino resort as part of an €8 billion complex that is planned to be built at the site of the defunct Ellinikon International Airport near Athens, Greece.
At a press conference held Friday in the Greek capital, Hard Rock CEO Jim Allen announced that the company has made a binding offer to bring a casino to the larger complex, which is dubbed Hellinikon.
The Florida-based gaming and hospitality company plans to invest €1 billion into the development of a casino resort as part of the larger complex. Mr. Allen further revealed that Hard Rock would self-fund its project with €250 million, supplemented by loans extended by Greek and foreign banks.
The development will include a casino with slot machines and table games, a hotel, a conference center, dining outlets, and entertainment areas.
Mr. Allen went on to explain Hard Rock’s proposal will pay due respect to Athens’ rich heritage as an international city. The company will work with local businesses to help it achieve that goal. The Hard Rock boss told local media that the project, if approved by the Greek government, will create 3,000 new jobs during construction stage and 1,600 permanent jobs when the casino complex becomes operational. Construction is expected to take between 20-26 months to be completed.
Mr. Allen told local media that “Athens is an international leisure destination and must have leisure activities such as a casino.” The executive added that what they want to create
“is a pan-European entertainment and hospitality hub in Athens.”
When Will the Hellinikon Bidding Process Finally Close?
The Hellenic Gaming Commission launched the casino bidding process this past February. Interested developers initially had two months to submit their proposals. While the casino tender was originally expected to be a two-month process, the Greek gambling regulator has extended the deadline multiple times since February.
According to reports by local media, the delay was caused by the Greek government’s failure to resolve certain zoning issues. These issues and the casino tender are important stages that need to be completed before the whole Hellinikon scheme can move forward.
The privatization of Athens’ former airport and its transformation into a luxury multi-purpose complex is part of Greece’s third bailout that was struck back in 2015. Local company Lamda Development was selected as the preferred developer of the €8 billion Hellinikon resort. The project is backed by Gulf and Chinese investors. Aside from a €1 billion casino complex, the scheme also includes luxury residences, hotels, MICE facilities, attractions, high street shopping experience, multiple dining options, and a yacht marina, among other amenities.
Greece’s snap election in early July further delayed the casino developer selection process. Prior to winning the election with his New Democracy party, the new Greek Prime Minister, Kyriakos Mitsotakis had promised that Hellinikon would be among the long-stalled projects that his administration would take on immediately to secure their eventual progress.
However, the country’s top official could not deliver on that promise and the deadline for the casino tender was extended one more time. Greek Development Minister Adonis Georgiadis said that the government would do whatever it took to ensure that the project would finally see progress before the end of the year.
It is now believed that the winning bidder for Hellinikon’s casino portion would be announced by the end of September.
The Other Bidders
Hard Rock is facing tough competition in the race for the casino license for a gaming resort at the former airport. Fellow US tribal gaming and hospitality company Mohegan Gaming & Entertainment is, too, bidding for the right to participate in the Hellinikon scheme. The company’s CEO, Mario Kontomerkos, is understood to have traveled to Greece several times to discuss with regulators and authorities Mohegan’s bid.
Hard Rock International is managed by the Seminole Tribe of Florida, while Mohegan Gaming & Entertainment is controlled by Connecticut-based Mohegan Tribe.
The multiple delays in the casino operator selection process resulted in two of the other companies that had previously expressed interest in participating in the Hellinikon scheme losing interest, with those two being Caesars Entertainment Corp. and Genting Group.
Hard Rock Seeking Mediterranean Exposure Again
Hard Rock’s Hellinikon bid is actually not the first time the company has sought to build a casino in the region. In 2016, it partnered Hong Kong-listed Melco Resorts & Entertainment to bid for a license for the development of a casino resort in the Republic of Cyprus. The two companies actually won the race.
However, Hard Rock dropped out of the scheme just a day after the Cypriot government issued the gaming license. The company said back then that it wanted to explore other development opportunities in other parts of Europe.
It should also be noted that the Hard Rock is not a stranger to the Athens market. The company opened a Hard Rock Cafe in the Greek capital back in 2015.
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