[attach id=247948 size="medium"]The San Lawrenz Kempinski Hotel was given a “letter of intent”in 2004. Photo: Max Xuereb[/attach]
A casino operation concession granted to a five-star resort in Gozo in 2004 was never taken up because an operator was not found, it emerged yesterday.
Following the Prime Minister’s announcement that a licence for a first casino in Gozo was issued last week, San Lawrenz Leisure Resort Ltd – which owns the San Lawrenz Kempinski Hotel – told The Times that nine years ago the hotel was given a “letter of intent”.
This would have allowed them to apply for a casino licence had they affiliated themselves with the right operator.
The letter of intent dated March 9, 2004, was signed by then Finance Minister John Dalli. It expired in 2006.
San Lawrenz resort director Dorothy Baldacchino said: “We already had the building in place for a casino and that is why we reached a concession agreement with the Government.”
Without a letter of intent it would not have been possible to start negotiations with any operator. No casino provider was found so San Lawrenz resort never applied for a licence.
We never ceased looking for the right operator – and the company is still interested in obtaining a licence
“However, even though the letter of intent expired, we never ceased looking for the right operator – and the company is still interested in obtaining a casino licence,” Ms Baldacchino said.
The market for a casino in Gozo would have different potential to Malta, she said.
“As the island is secluded, it is easier for the operator to encourage his clients to stay within the casino.”
Victor Borg, owner of Ta’ Ċenċ, Gozo’s only other five-star hotel, has welcomed the Prime Minister’s announcement. But both the Kempinski and Ta’ Ċenċ owners said they would wait for the Government to issue more project details.
Parliamentary Secretary for Economic Growth Edward Zammit Lewis confirmed to The Times there was a “commercial interest” in a Gozo casino licence.
There are currently two licences for casinos in Malta: the Oracle Casino in Buġibba and the Dragonara Casino in St Julian’s. Another licence will be issued to replace the one withdrawn from the Casino di Venezia in Vittoriosa earlier this month due to non-adherence of the Gaming Authority conditions.
When asked if the casino market risked becoming saturated, Dr Zammit Lewis said the Government would carry out a “market assessment” to determine this.
“The results will be matched against the expressions of interest and the market data will be presented to the bidders,” said Dr Zammit Lewis, adding that market forces would regulate the market.
Malta Chamber of Commerce, Enterprise and Industry director general Kevin Borg believes a Gozo casino will not be a threat to Malta.
“It’s competition,” he said.
Michael Grech, the president of the Gozo Business Chamber, was in favour of any kind of business “that opens up in Gozo”, though voiced concern that whoever embarks on this venture “has to do their homework well”.
“My personal opinion is that it might not be that viable given that Gozo is a small place and in winter it’s very quiet,” he said.
Mr Grech did not think that a casino will have a social impact on Gozo which promotes itself as ‘the islands where time stands still’.
“Gambling is something for a small percentage of people and most of tourists who come to our islands do not come here to gamble so I don’t think it will affect Gozo,” Mr Grech said.
The Times asked Sedqa whether four casinos would affect the gambling scenario on the islands; however, no replies were forthcoming by the time the paper went to print.