Cyprus launches competition for licensing casino resort

Cyprus launched a completion on Friday inviting interested bidders to express interest for obtaining a concession for the eastern Mediterranean island's first casino.

Under Secretary to the President Constantinos Petrides said that the final the invitation expires on December 18.

"If everything goes smoothly, the final selection will be made 45 days from today," he said in his Facebook account.

Legislation approved in July by Parliament provides for the establishment of "a top comprehensive casino resort in Europe and one of the best in the world."

The integrated operation should include luxury accommodation, entertainment, gaming and dining of world standard.

Cypriot authorities have said they expect up to 15 expressions of interest, among them four casino giants from Las Vegas, Malaysia and Macao keen to obtain the license.

Ministry of Commerce sources said they are Las Vegas casino operators MGM and Caesars, Genting from Malaysia and Kezner from Macau.

Some of them have already sent representatives in Cyprus for an on the ground assessment.

Consultants hired by the government say that after the casino starts operation the eastern Mediterranean island can expect a considerable increase in its tourism, which accounts for more than 12 percent of its annual economic output.

They project a potential increase of one million in the number of tourists coming specifically for the casino.

The Consultants say that income from gambling will be only a small part of the additional economic benefits for the island.

The casino concession will be valid for 30 years and will enjoy 15 years of exclusive operation.

The state will take 15 percent of gross income from gambling and an annual fee of 2.5 million euros for each year for the first four years, rising to 5 million euros per year for the next four years, after which it may be reviewed upwards every four years.

The law will provide 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.