Greece’s troubled Hellinikon integrated resort casino project could start construction before any decision is made on who gets the lone casino license to avoid further delays.
On Monday, Greek media outlet Ekathimerini reported that the Hellenic Gaming Commission (EEEP) planned to meet during the week spanning January 10-17 to discuss the relative strengths of the two bids for the sole casino license at the €8b Hellinikon resort project on the site of Athens’ old international airport.
Two US tribal gaming operators — Hard Rock International (HRI) and Mohegan Gaming & Entertainment (MGE) — were the only casino firms to submit bids for the Hellinikon license, but alleged issues with HRI’s paperwork have prompted speculation that the company’s bid will be declared invalid.
HRI has already vowed to file a legal challenge if its bid is set aside while MGE will reportedly sue if HRI’s allegedly faulty bid is allowed to proceed. Even after the legal issues are resolved, the license has to be ratified and approved by multiple layers of government. As a result, concern is growing that the casino license question won’t be definitively answered until next summer at the earliest.
That’s a problem, because Lamda Development, the Greek/Asian/Arab joint venture that has the task of building the Hellinikon resort, technically can’t start construction on the project until the casino permit has been issued. And the cash-strapped Greek government won’t receive its first €300m payment from Lamda until the company officially puts shovels into dirt.
As a result, the government is reportedly negotiating with Lamda to secure an agreement that would allow the company to commence work on the project while the casino permit issue is resolved. Honestly, at this point, the action-packed 20 years that Odysseus took to make it home to the shores of Ithaca is starting to look like a pleasure cruise compared to this modern Greek tragedy.
