The future of 225 employees at the Dragonara Casino is currently in limbo, after Cabinet has reportedly refused to grant an extension to the current operators to continue until next August. Government sources have revealed that Barriere Group, who have been operating the prestigious landmark casino since 1999, have only been given until the end of January to operate, while finance ministry officials are still vetting the expressions of interest that have been submitted during the summer. The fact that government has refused to grant the proposed extension of operation has put the current operators at a serious disadvantage vis-a-vis their competitors, as it does not make any economic sense to invest in the operation pending any decision about the future.
MIMCOL – the government’s investment arm – has still not submitted its memorandum to government about the financials submitted by the three bidders, that also include Barriere Group.
While a senior MIMCOL officer told MaltaToday that the process “should be on time,” employees at the Dragonara Casino are expressing concern about their future, even though the conditions laid by government insist that whoever takes over the concession must take up the current workforce.
Barriere Group who have invested in the Dragonara Casino over the last 10 years are competing to keep the concession with rivals Tomino Ltd (which manages two of the four casinos in Malta - Portomaso and Oracle) and the consortium Novomatic Peninsula (composed of Novomatic and Pinnacle Gaming, which through Faiplay operated in the majority of bingo halls in Malta).
The government of Malta had asked for expressions of interest by companies that are experienced in the running of casinos and which are able to afford the hefty capital investments needed for the refurbishing of the building, its strengthening and modernization, as well as to improve the competitiveness of the casino within its sector.
Meanwhile, Barriere Group, have reacted to claims by Portomaso Casino on their alleged involvement in an Italian casino tender, that they have no interest in the operation of the Taormina Casino, lambasting the rival casino for “inventing” the rumour.
In comments made to this paper last Sunday, Dragonara Casino senior spokesman Peter Borg Olivier categorically denied that Barrière Group had expressed any interest in taking over the concession for the Taormina Casino in Sicily.
Portomaso Casino director Gianfranco Scordato was quoted by gaming portal gioconews.it that Dragonara Casino were after the Taormina concession.
He said that the move was “inopportune and illegitimate”, alleging that the Barrière Group had “no right” to express its interest or to undertake any future commitments when it is currently competing in Malta to renew its concession of the Dragonara Casino.
According to Scordato, Dragonara Casino’s interest in Taormina is “suspiciously dubious.”
Peter Borg Olivier insisted that Gianfranco Scordato’s comments to the gaming portal were an “outright fabrication” and “conveniently misleading.”
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