Melco-Hard Rock Awarded Cyprus Casino License

“Capitalising on Melco’s unique experience in creating the most spectacular integrated resorts in Asia, as well as Hard Rock’s proven track record of delivering differentiated hospitality driven experiences across the globe, the consortium looks forward to collaborating with the Cyprus Government to establish a world class integrated casino resort that will be beneficial to the economy and tourism of Cyprus”

Details of License

The law allowing for the issuing of a single casino license passed in 2015. Under the terms of the legislation, the licensed property would need to be what the industry refers to as an integrated casino resort, or one that includes not just gaming space but also provides accommodations, dining options, entertainment venues and shopping. By putting this stipulation in place, the Cypriot government hopes to see a resort established that will attract travelers from around the world, not just locals hoping to spend a few hours gambling.

Tender Process

After the legislation was finalized, the Cypriot government opened a tender process, with eight international operators subsequently submitting their proposals. That list was narrowed down by officials to include just Melco-Hard Rock Resorts, NagaCorp and Bloomberry Resorts, with all three of the operators then invited to submit in-depth proposals by an October deadline.

In the end, only Melco-Hard Rock Resorts followed through and presented a proposal that complied with with the stipulations put forth by Cypriot gaming law. This includes the operator having to establish at least 100 gaming tables and a minimum of 1000 slot machines, as well as the resort’s hotel offering at least 500 rooms. By being the first operator to be approved, Melco-Hard Rock will also be given a 30-year license, with the first 15 years taking place under a period of exclusivity, so the resort will not have any competition on the island.

Limassol Chosen as Casino Base

Melco-Hard Rock Resorts has reportedly chosen Limassol as the location of their new resort, as it is already a hot spot for international tourists. The development is expected to create thousands of jobs for Cypriots, and in order to bring the project to life Melco-Hard Rock Resorts has already established contracts with a local company called Cyprus Phassouri, which owns the land where the resort will be built. The firm is also involved in a number of other industries, including real estate, mining and agriculture.

To Open in 2020

A number of  details have emerged about the project, with the property expected to be built on a stretch of land located near Limassol harbor and Lady’s Mile beach, and with Energy and Tourism Minister Giorgos Lakkotrypis stating that the company is expected to spend around €500 million on the casino resort. An opening date has been forecast for the end of 2019 or early-2020, but while the project is in the works, the Cypriot government will allow Melco-Hard Rock Resorts to open a small satellite casino and three slot parlors in order to begin training employees, and start building a brand on the island. There is no word yet as to when these first steps might get underway, but the temporary casino is expected to open for business by late-2017 in Limassol on the current site of the Monte Caputo nightspot on Amathus Avenue.

The Island of Cyprus

The Republic of Cyprus in located in the Eastern Mediterranean, and is situated close to such countries as Turkey, Syria, Lebanon, Israel, and Egypt. About 80% of the residents of Cyprus are Greek Cypriots, with the remaining Turkish Cypriots, although the island has also become a popular retirement location for expat.

Intercommunal fighting between Greek Cypriots and Turkish Cypriots broke out in 1974, leading to Turkey invading the north of the island where it still occupies around 37% of the island with a 35,000 strong army. However, there is hope that a breakthrough in negotiations to unify the country may come to fruition by next year as critical talks are currently underway in Switzerland aimed at solving the 42 year-old dispute.

In the meantime, Cyprus continues to be a tourist hotspot, and between 1990 and 2016 an average of 190,802 tourists visited the island each month, but reaching a record high of 482,132 in July of this year.