At the beginning of April the Greek government announced plans to sell 17% of its stake in the state lottery company OPAP, after submitting an amendment to parliament allowing it to reduce its 51% holding. Greece at present has a budget deficit that is double the limit imposed by the European Union on Euro currency nations, and is seeking privatizations in several industries to reduce the deficit. OPAP revenues in 2004 were up almost 40% from the previous year, largely due to the introduction of the numbers game Kino in early October.

Greece is also not in compliance with EU regulations by not allowing private gambling companies apart from licensed casinos. EU law says that member states should deregulate the industry and not maintain state gambling monopolies. The sale of 54 million shares (17%) in OPAP is expected to raise around US$1.5 billion, and the Finance Ministry has indicated it will continue to appoint the majority of the company’s board members even though the government’s stake will be reduced to 34%.

The full privatization of Greece’s largest casino is also on the cards, as is the lifting of a ban imposed in February 2002 on slot and fruit machines outside casinos. Mont Parnes Casino is the only gaming facility in the greater Athens area and by virtue of its position has enormous potential. The casino in Loutraki may be Greece’s top revenue earner at present, but the Mont Parnes is only 35km northwest of Athens and may well soon overtake its rival on the coast.

Last week Hyatt Regency S.A. announced the complete reconstruction of the Mont Parnes (Parnitha) Casino & Hotel, in two stages. Upgrading the existing cable car and constructing underground parking at a cost of €19 million will be the first stage that should be ready by the end of the year. The second stage will be the modernization and reconstruction of the casino and hotel complex in an investment of €90 million with completion by the end of 2007.

Gambling revenues worldwide are on the increase but the Greek government's share in the lucrative gambling business is of necessity declining. The golden goose is about to lay some of its golden eggs further afield.
(E-04.27.05)

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