In May last year it was reported that James Packer’s then PBL had once again teamed up with US resort developer Eighth Wonder and others to invest in a five casino project in the Bezenye area of Hungary close to the borders of Slovakia and Austria. The complex, with a planned series of hotels and giant amusement arcade, was described as Europe’s largest casino resort and as such given the name EuroVegas.

Investment bank Credit Suisse was understood to be raising €137.5 million from hedge funds in the first time financing of this kind in Europe. With the building permit expected to be granted in September it appears that construction work could finally begin by November. Plans for the casino complex were originally outlined in 2001. The costs of the first phase of construction, estimated to be around €730 million, will be managed by Credit Suisse.

According to the concession agreement EuroVegas must be completed by the autumn of 2010. The term of the concession is 20 years with an option for another 10 years. The agreed gambling tax is 10%, less than the present Hungarian gambling tax on other properties which operates on a sliding scale of up to 30%. Not everyone is convinced that the project will actually come to fruition, citing possible lack of potential for adequate profits in the region.

EuroVegas has already paid the town of Bezenye, with a population of around 1,650, over €250,000 in land tax. The Austrian Asamer Group, which sold an 80% stake in the land and gaming licences for EuroVegas, last year stated that the scheme offers extraordinary potential for development in the region and the ambitious recreation and entertainment complex aims to attract wealthy Russian gamblers. (E-08.29.08)

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