Issue link: https://maltatoday.uberflip.com/i/413175
maltatoday, SUNDAY, 9 NOVEMBER 2014 4 News CONTINUED FORM PAGE 1 "This is a discretionary issue and we can in- crease the number of casino licenc- es," Cardona said. Cardona however refused to com- ment on a decision to issue two licences for casinos from a com- petitive tender that was originally intended to offer one casino con- cession in Malta, and another in Gozo. No bids were submitted for the Gozo concession. He said he would not comment on the matter due to court pro- ceedings instituted by Dragonara Gaming Limited, which is owned by entrepreneur Michael Bianchi and Johann Schembri. Cardona said that he would not comment on the injunction order, but when quizzed he said that he did not rule out an out-of-court settlement. Dragonara Gaming went to court last week to stop the Privatisation Unit from issuing a licence it grant- ed to Eden Leisure Group, as the first-ranked bidder in the expres- sion of interest, after a technical committee chose the group on the strength of a 10-year business plan. The second licence was awarded to the Dragonara Gaming, which already runs the 10-year concession on the Dragonara Casino, which of- fered an up-front cash advance of €4 million. Dragonara Gaming say it is €3 million more than the cash offer from Eden Leisure. But in spite of being offered a 'negotiable' licence, the Dragonara owners still instituted legal pro- ceedings against the government. "We have challenged what is evi- dently a vitiated selection process for the award of a concession to open and operate a new casino in Malta. On November 17, 2014, in court, we shall deliver the neces- sary submissions that need to be made and to bring our evidence on the vitiation of the process. We are totally committed and determined to exhaust all remedies available to us," Dragonara's business develop- ment manager Franco Degabriele said. Eden Leisure managing direc- tor Ian Decesare told MaltaToday that his group had first requested a concession for a casino back in 2011 from the Lotteries and Gam- ing Authority. "The discussions were fruitless because the govern- ment at the time was not interested in issuing another concession for a casino." Their forecasts are realistic and not exaggerated, Decesare ex- plaieds. "When the expression of interest was announced last year, we considered the criteria centering around the issuance of this valuable licence. We clearly understood that the government was looking for added value for the concession, and not just any other casino. "We decided that if we were go- ing to go for this concession, we would couple it with a much larger investment in our existing hospital- ity business. We devised a master plan which is being effected today. We purchased the building next door to the Intercontinental Hotel to redevelop it into a Holiday Inn branded hotel, and planned a 32 super luxury suite extension with a new club lounge and pool at the InterContinental, plus a new con- ference centre. "These facilities would centre around a luxurious casino itself that will no doubt add massive value to Malta's casino proposal. All togeth- er the project value will surpass €31 million." Decesare insisted that Eden's offer satisfied the 13 criteria listed in the government's request for propos- als, to see a large investment that generates jobs, new businesses and tax revenue. But Dragonara Gaming Ltd argue that the technical committee con- clusions favoured them, due to the superior cash payment they were offering, amongst other reasons. Sources close to the government have denied this, stating that the technical committee was clear in its conclusions and that it chose Eden Leisure. There were three other bidders for the licence: Seabank Hotel, Cor- inthia Group, and Polidano Group of Companies, but they were not shortlisted. Arthur Gauci, Seabank CEO, told MaltaToday that their proposed ca- sino would be situated in Mellieha, an area which while already having 7,500 beds with 10 hotels, primarily in the 4-star segment, was very lim- ited in terms of tourist entertain- ment opportunities. "Mellieha offers upmarket resi- dential property, which could very much be targeted for high net worth individuals moving to Malta. Most of the foreigners residing in Malta choose the Sliema/St Julian's area due to the entertainment op- portunities available in these areas," Gauci said. "Opening of a casino at the Sea- bank would be a natural progres- sion in the development of the hotel and its environs from an entertain- ment standpoint. The combination of all-inclusive hospitality and ca- sino entertainment is a model that has worked well for major cruise liners and we are confident that we can implement it successfully at the Seabank." Alfred Fabri, company secretary for the Corinthia Group of Compa- nies, operator and owner of several hotels on the island, said they were aware that they were not shortlisted but they had no plans to take the matter forward. Polidano Group of Companies could not be contacted for a com- ment. Unsuccessful bidder Seabank still interested in casino licence Ian Decesare Michael Bianchi Imposing: The Dragonara Casino