Operator News
Greece – Regency Entertainment believes new laws will revive Greek casinos
By Phil - 22 January 2018
Greek casino operator Regency Entertainment has commended the Greek government on enacting new casino laws in tough economic times.
Regency, which operates casinos in Thessaloniki and Athens, stands to benefit from new laws allowing it to relocate its Athens licence from the top of Mont Parnes to somewhere more accessible in the capital.
Ian Gosling, COO at Regency Entertainment, said: “This is good and welcome legislation after many years of misery for our industry. The current administration did what it could and achieved the best results we could have hoped for given the difficult domestic economic circumstances. All we can now hope for is for Greece to start having solid GDP growth, which is around the corner and things will most definitely look brighter.
“The relocation project is currently being developed,” he added. “We are very close to finalising an area program. With a much improved location, within a heavily populated area we should see substantial improvement of the GGR.”
Greek casinos peaked in 2008 when turnover reached €744.5m. GGR fell by over 60 per cent over the next five years and has continued to fall since. However a long overdue return to economic growth after the recession has given fresh hope that the fortunes of the country’s nine casinos could yet turn around. Greek GGR dropped by 3.2 per cent in the first half of 2017 from € 124.8m to €120.8 following a stagnant 2016. Higher rates of slot spend per customer were unable to paper over a 4.2 decline in casino visitation.
As well as the relocation approval, Mr Gosling highlighted the government’s decision to abolish entry fees and the new tax system as being particularly beneficial.
The new taxation system will be set at 20 per cent of GGR up to €101m, 15 per cent for GGR between €101m and €201m, 12 per cent for revenue of between €201m and €500m, and eight per cent for full-year revenue of over €500m.
Mr Gosling said: “We expect to see an immediate improvement of results due to this essential reduction in tax on revenues. This will allow for the survival of what was a zombie casino industry. It would have eventually closed down without government intervention.”
He added that the abolition of entry fees was ‘very important.’ “Especially for Regency Casino Thessaloniki which directly competes with border casinos in Gevgelia,” he explained. “The abolition has been an industry initiative taking over 15 years to come to fruition.”
There was also a provision in the bill which allows casino operators to lend over €50,000 to select customers. The law is aimed at foreign players to try and encourage more spending in Greek casinos.
“With a starting point of €50,000 this will not be something we rush into,” Mr Gosling explained. “The corporate decision taken will perhaps be reviewed after the opening of the Hellenikon casino in Athens.”
For some, the launch for new tenders for licences in tourist locations such as Mykonos, Santorini and Crete were the headline grabbing elements of the new legislation but not for Regency Entertainment. Mr Gosling said it was ‘highly unlikely’ they would bid for one of the new licences.
“We have one of the Athens licenses plus Thessaloniki, two major operations which are sufficient for our purpose,” he explained.
