The race for a 30-year license for the operation of a casino resort as part of the larger Hellinikon complex near the Greek capital has reportedly been narrowed to a lone bidder.
US tribal gambling operators Mohegan Gaming & Entertainment and Hard Rock International were the only two companies to submit applications to participate in the bidding process for the casino license before the Hellenic Gaming Commission’s October 4 deadline.
According to reports from Greek news outlets, Hard Rock might have been excluded from the competition due to incomplete data in its application papers. And the company has reportedly been questioning the license application review process, suggesting that it might be marred by a conflict of interest.
Greek authorities were expected to announce the winning bidder by the end of November. However, news emerged that one of the applicants seeking the license had left out important data and financial information from its offer dossier, which resulted in new delays in the selection process.
Some news outlets even specified that a letter of guarantee that was short by four days of the length prescribed by regulators was among the important data omitted in one of the bidding companies’ application.
It is believed that Greek regulators are set to announce any moment now that Mohegan, which earlier this year teamed up with local construction giant GEK Terna to bid jointly for the casino license, has been the only company to have successfully passed the first stage of the vetting process.
Hard Rock Threatens to Sue
Selecting the preferred developer of a casino resort is a mandatory step before the whole Hellinikon project can move forward. The larger plan involves the development of a multi-purpose mega-complex with hotels, residences, retail space, MICE facilities, food and beverage outlets, parks, and multiple entertainment options at the site of the former Elliniko International Airport near Athens, Greece.
Greek real estate specialist Lamda Development was selected as the preferred developer of the Hellinikon complex, investment into which is expected to exceed €8 billion. Hard Rock and Mohegan are bidding for the right to develop a €1 billion casino resort as part of the larger project.
While Greek regulators have not named the bidder with the missing data, there have been multiple reports that it was namely Hard Rock that has failed to provide all the required documentation when applying for the casino license.
Conflict of Interest
Speculations that Hard Rock has filed the incomplete application intensified when the company said that it would sue Greek authorities in local and European courts, if it gets removed from the competition. On the other hand, Mohegan made the same threats.
However, earlier this week, Hard Rock’s CEO, Jim Allen, told Greek Finance Minister Christos Staikouras and Development and Investment Minister Adonis Georgiades during the 21st Annual Capital Link Invest in Greece Forum, which took place in New York, that the competition process might be marred by a conflict of interest.
According to Mr. Allen, the international legal consultant advising Greek authorities on the two casino license applications has also worked with Mohegan. The Hard Rock boss went on to say that they do not necessarily think the bidding process is unfair, but are genuinely concerned about the possible clash of interests.
Hard Rock’s claim and threats to sue Greek authorities could further delay the long-stalled multi-billion project. As mentioned earlier, the issuance of the casino license is a required procedure for the whole scheme to move forward. However, any litigation arising from the potential exclusion of one of the two bidders could further delay the selection process and the whole project.
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