Mega casino construction in Ellinikon, Greece, which is expected to generate about EUR 6 billion over 30 years, is having trouble. According to the Greek City Times (GCT), the banks have requested that the investors Hard Rock and GEK TERNA agree to financing terms that are different from those that were initially agreed, which is said to have an impact on the sustainability of the entire project.

Investment of 250 million euros:

According to reports, the Ellinikon casino project involves the construction of a 5-star hotel with 3,500 rooms on a 120,000 square meter site.  According to reports, the development will include a conference and showroom center, an arena with 10,000 seats, and 15,000 square meters of gaming space. The initial agreement stated that the investors and the banks would each contribute EUR 250 million to the property's development.

Banks Requesting an Additional 120 Million Euros:

The source claims that Hard Rock and GEK TERNA have been asked by the deal's banks to invest an additional 120 million euros in the project. According to reports, the investors announced their withdrawal from the project, but the government does not want them to leave. According to reports, the Greek State anticipates 6 billion euros in revenues over a 30-year period, with an estimated fiscal benefit of more than 200 million euros annually for the same time frame.

Government Expectations of EUR 6 Billion:

The government anticipates receiving €3 billion in gaming tax revenue, €1.1 billion in social contributions, and €800 million in income tax, according to the source. The project, which may additionally generate €500 million from VAT and €600 million from municipality fees, as well as from the respective 30-year concessions, is reportedly very appealing to the top government officials.

Advanced Project:

According to GCT, Piraeus Bank will act as the project's middleman while National Bank and Alpha Bank reportedly request financial support from additional investors.  According to reports, bank executives said: "This is a complex project that requires significant capital and has never been done in Greece."  Additionally, according to GCT, the executives acknowledged asking the investors for more money.

Mediators:

A 350–450 million dollar portion of the investment can reportedly be covered by the Recovery Fund as an alternative plan to move the project forward. Mrs. G. Peristeris, the company's CEO, allegedly stated that "the group will also seek to secure loan funds for selected projects and his investments." The source claims that she did not specifically make reference to the Ellinikon Casino project.

Additionally, Michael Karloutsos, the son of Alex Karloutsou, the alleged close friend of Joe Biden, the US vice president, and a Greek Orthodox priest, is said to have acted as a go-between for Hard Rock and the Greek government. However, GCT claims that because of his involvement, there was a "broken phone" between investors and banks. The source claims that Karloutsos was hired by Hard Rock to manage the "Casino in Ellinikon" project during the previous administration, but that his close ties to the opposition party are now allegedly causing him to lose his job.

Project-Related Problems:

The most recent changes are a continuation of the problems the project has had since the beginning. The source claims that the issues started during the protracted tendering process, which was finally finished on October 13, 2020. According to the reports, Hard Rock was excluded from the process and was required by law to return the winning bid. Jim Allen, the CEO of Hard Rock, reportedly said at the time that the procedure was unfair from the beginning.

To develop the casino property in Ellinikon, however, the company eventually established a joint venture with GEK TERNA on a 51:49 stake basis. However, the project has been put on hold as a result of the banks requesting funding, the investors seeking a way out, and the mediators attempting to advance the project. They are all seeking a solution, that much is certain.