Legislation

Cyprus – One casino policy is step in the wrong direction

By Phil - 2 August 2013

Whilst business leaders and politicians have saluted the Cypriot move to embrace casino gaming in the south of the island, both are now urging the government to allow more than one casino project to go ahead claiming one solitary licence would be destructive to other areas and would minimise economic benefits across the Greek side of the island.

Politicians in Paphos have already confirmed they will lobby government claiming the decision to award just one licence could cripple the local economy if it is awarded to another locality.

Andreas Soteriades, Secretary of SEKO Paphos, the Coordinating Committee of Parties and Organisations, described the potential of a casino being developed on the east of the island or in Limassol as disastrous for Paphos. he said the only way forward was to meet with President Anastasiades and he urged local hotel owners, shop keepers and mayors to get together to make sure Paphos is able to have a casino. “We believe that it will be better for Cyprus to have a few casinos in different areas, instead of just one,” he said. Government Spokesman Christos Stylianides has said that the single casino licence would attract half a million new tourists to Cyprus and create over 3,000 new jobs.

Mr. Soteriades, however, believes that the one licence is a step in the wrong direction.

He slammed the decision as ‘wrong’ and said it ‘constitutes unfair competition.’ He added that Paphos met all the necessary requirements to operate a casino including tourist flow, high quality visitors and infrastructure to and confirmed the locality had sent a letter to the President.

The conclusion to allow just one, super-sized casino in Cyprus, following the business model of the two Integrated Resorts in Singapore, instead of several smaller ones, was reached following a study carried out by private-sector consultants and funded by the Cyprus Tourism Organisation. Politicians in Larnaca in the southwest of Cyprus, have already said it should be the choice.

The alternative proposal which was considered and subsequently rejected would have seen individual casinos permitted in each of the tourist resorts, Paphos, Limassol, Larnaca, Ayia Napa/Paralimni as well as Nicosia and the hill resorts.

Costas Apostolides, Chairman of EMS Economic Management, said: “This option would also attract investment and tourists and would upgrade all the tourist areas if done properly. Assuming the super casino resort is centrally located, that is within range of Limassol, Larnaca and Nicosia, it would not upgrade the tourist product for Paphos and Ayia Napa, while it would kill the chance of revitalising the mountain resorts. Therefore the regional implications could be quite serious.”

Mr. Apostolides also questioned whether the one super casino project would generate any real benefits for two years as construction work was at least three years away. In contrast, he claimed that regional casinos could be in operation within a year in some cases, for example by converting the Forest Park Hotel in Platres. He also highlighted other appropriate facilities or hotels in Paphos and Ayia Napa/Paralimn employing hundreds of people.
“Casinos, providing high quality entertainment and with strict regulations, should then be established in the mountains, Paphos and Ayia Napa/Paralimni,” he explained. “A centrally located super casino resort could also be established following correct tender procedures and on the lines approved the government.”

He also advised that the government should concentrate on formulising its gambling policies before awarding a licence. “The Government’s plans to legalise casino have gone down well with business groups, the public and the tourist industry, but it essentially puts the cart before the horse,” he said. “If the government is serious about casinos it must first develop a comprehensive casino regulation policy and set up an appropriate mechanism to control the whole industry. What we have is socially far worse than organised casinos. But before proceeding to legalising casinos, it is essential that there is a comprehensive gambling policy in place with laws covering every aspect and a supervisory body with the powers and organisation it requires to ensure the legitimate operation of casinos. Casinos deal in cash and attract gangsters like flies. The underworld must be kept out.”

The government plans to fast track the licencing procedure to deliver its conclusion within a year. There are currently no legally operated casinos in the Republic of Cyprus, but 24 casinos operate in the Turkish Republic of Northern Cyprus.