The company behind the Dragonara Casino says it is considering whether to apply for a new casino concession as theirs draws to a close later this year.
Earlier this week Times of Malta reported how the Dragonara Casino could be replaced by a new operation as its 10-year concession will come to an end this summer.
The government’s Privatisation Unit announced on Wednesday that it was accepting bids from parties interested in operating an €11 million casino from one of the island’s designated tourist zones.
Malta currently has four licensed casinos – the Dragonara Casino, Portomaso Casino, Casino Malta and the Oracle Casino.
In a statement, Dragonara Gaming Limited, the company that operates the casino in the historic Palazzo Dragonara, confirmed its concession would draw to a close in June 2021.
This, the company said, was standard practice after having already been given a six-month extension on its license due to delays caused by the COVID-19 pandemic.
The Dragonara Casino was cast in the national spotlight two years ago when the decade-long lease on the Paceville prime real estate housing the casino was extended for a further 64 years.
The agreement on holding the St Julians’ land is separate to the concession to run a casino.
Then economy minister Chris Cardona had presented a motion in parliament for Dragonara Gaming Limited to be given a 64-year lease extension until 2083 for the land. It was approved by the house in 2019.
At the time, Times of Malta reported that the government had sought legal advice after it feared the controversial agreement could expose Malta to legal action from Brussels for possibly violating competition laws.
Rival casino owners had also expressed their shock at the decision to extend the lease on the government-owned land and questioned if it was in breach of EU state aid rules.
In its statement on Friday, Dragonara Gaming said it was important to differentiate between the casino concession, the casino licence and the lease agreement.
A casino concession as issued by the government, is adjudicated via a public tender every decade while a casino licence is awarded to the winning casino concessionaire by the Malta Gaming Authority.
It said the lease agreement signed between Dragonara Gaming Limited and the government in 2019 "has no connection to either the casino concession and the casino licence".
"With regards to the current concession opportunity, Dragonara Gaming Limited will study the contents of the RFP and subject to an internal review of the conditions, will determine whether to participate in the tender," it said.
"The company is fully compliant, has the right knowledge, experience and drive to successfully operate a casino in Malta as it has done in the past 11 years," it added.