As the long-stalled €8 billion Hellinikon integrated resort project is on the verge of another delay, the mega-scheme is also facing legal action from the two companies that are bidding for the right to build a €1 billion casino complex as part of the larger resort.
US casino and hospitality operators Mohegan Gaming & Entertainment and Hard Rock International had both submitted their gaming license applications with the Hellenic Gaming Commission by the October 4 deadline.
The regulator was expected to announce the winning bidder by the end of November, but news emerged last week that one of the bidding companies failed to submit certain required information as part of its application. That could delay the commission’s decision by four to six months.
Following that news, Hard Rock threatened to file “mass appeals”, if it is knocked out of the casino license race. Rival Mohegan, which partnered over the summer with Greek contractor GEK Terna to participate jointly in the tender, also extended its own threat for legal action in case of non-compliance, which would mean the selection of Hard Rock as the winning bidder.
Announcing the operator that will develop the casino gaming portion of the larger Hellinikon resort is a required step in order for construction of the €8 billion mega-complex to finally begin at the site of the former Elliniko International Airport near Athens.
Dedication to Win
As noted by local news outlets, both Hard Rock and Mohegan’s threats to sue demonstrate the two companies’ commitment to winning the tender. Both operators are pitching plans exceeding €1 billion and both have a proven track record of operating casino resorts in various markets.
Greek media reported last week that one of the two bidders had left out important information when submitting its application to participate in the casino tender. It now seems that the Hellenic Gaming Commission will seek to abide by all rules and proceedings of the contract notice, which may result in a delayed decision.
The Greek government has recently confirmed that all laws and regulations will be complied with during the review process leading up to announcing the winning casino license bidder so that any ambiguities and misunderstandings are prevented.
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After a consultation with legal advisers, the special committee that the Greek gambling regulator has set up to review the two license applications is understood to be calling the bidders for evaluation. The committee will then report back to the Gaming Commission, which will determine the best overall offer.
However, according to sources familiar with the matter, “things are not looking good” for Hard Rock’s bid. Commenting on those reports, the group’s representative, Michael Karloutsos, said that they have trust in the integrity of the Gaming Commission’s special committee, but will not have any problem to take legal action if they feel their trust was betrayed.
The winning bidder will be expected to build a casino resort that will be part of the larger Hellinikon complex. The overall €8 billion scheme represents a plan for the privatization of the defunct airport and its redevelopment. Greek developer Lamda Development was tasked with materializing the ambitious scheme, backed by Chinese and Gulf investors.
Source: Threats of ‘mass appeals’ in Elliniko casino tender, Kathimerini
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