Roundup: 13 casino operators express interest for Cyprus casino resort

Thirteen casino operators have responded to an invitation by Cyprus to express an interest in establishing and running a casino resort of international standards, a government minister said on Tuesday.

Commerce and Tourism Minister Yiorgos Lakkotrypis told a parliamentary committee examining the casino legislation that among those interested in the project are some from the far east, but he did not name them.

He said more interested parties are expected to come forward once the legislation regulating the establishment and operation of the casino is passed by parliament.

Officials setting out details of the project said they hope the legislation will be passed by the end of this month, opening the way for inviting international tenders.

The officials said the legislation has been drafted in association with the European Commission so as to be in line with European law.

They said they expected to start a competition process three weeks after the legislation is passed and to award the project to the successful bidder two months later.

They put the initial cost of the project at 500,000 euros (589,350 U.S. dollars) and said that it would help attract half a million tourists a year, substantially helping bailed-out Cyprus to stabilize its economy following four years of recession.

The casino is intended not only for the rich of the world but also for local gamblers who spend an estimated 30 million euros each year by crossing into the Turkish occupied part of Cyprus to put their stakes in several hotel casinos operating on the other side of the divide.

But Under-Secretary to the President Constantinos Petrides said the main goal is to attract more tourists.

"Our goal is not to legalize gambling but rather to greatly diversify our tourist product," said.

The casino concession will be valid for 30 years and will enjoy 15 years of exclusive operation, meaning that the government will not grant another integrated casino resort license for that period.

The state will take 15 percent of gross income from gambling and an annual fee starting at 2.5 million euros for each year for the first four years, rising to 5 million euros per year for the next four years.

The law provides for a casino of international standard, accommodation exceeding the requirements for a five-star establishment with at least 500 luxury rooms, at least 100 gaming tables and at least 1,000 gaming machines.

But the operator can establish four other premises outside the casino with a maximum of 50 gaming machines each but no other casino gambling.

The operation will be controlled by a 7-member Gaming and Casino Supervision Authority which will be tasked overseeing all casino activities and with making sure that it will be kept away from organized crime. Endit