Suspended casinos bet on their sale

Following suspension of the two casinos at Bucharest’s Hilton and JW Marriott hotels for suspected illegal activities, the owner has put both of them up for sale.

The decision by the Grand Casino and Diamond Grand Casino to pull-out comes in the wake of the National Agency of Fiscal Administration’s (ANAF) investigation into alleged tax fraud and money laundering at the two clubs. Even though the company has launched an appeal, it still intends to sell.
“We feel we are winning in the courts right now, but our parent company is afraid to continue business in Romania,” Sorin Constantinescu, general manager of the two casinos, told BBW. “The Government’s investigation and resulting suspension has tarnished the public’s image of us. When authorities become involved, the general public become very suspicious. Shutting us down even for a day is enough to cause major long-term damage. It will take a minimum of three months to recover.”
Constantinescu said the casinos’ expected turnover for this year is roughly 38 million Euro compared with a 50 million Euro turnover from 2004. It is unclear exactly how much effect the recent scandal has had on profits, but Constantinescu said that since the ANAF’s investigation began, “we have lost nearly half our gamblers.”
He said about 70 percent of the casinos’ clients are foreigners and that profits at the two hotels have been hit as well from what he termed “the trickle-down revenues generated from room rentals and other hotel services.”
However, Dina Litzica, public relations director for the Marriott, said “as 99 per cent of our visitors are business people, the casino only influences our week-end occupancy, which represents a small percentage of our total revenue.” Constantinescu estimates the two casinos will lose just over 400,000 Euro as a result of the 15-30 day suspension.
Sebastian Bodu, president of the ANAF, declined to comment specifically on the sale of the two casinos but in an earlier press release he said: “We will continue to pursue these casinos until they get bored.”
No investors have yet shown interest in buying the two casinos. “As a result of the recent scandal, the selling price may have dropped as much as 60 percent, to about 20 million Euro,” Constantinescu said. “The process of selling will be a long and difficult one. In my opinion we will not be able to find a buyer soon because, as it is apparent, in this business there is no guarantee for long-term success.”

Gambling articles | Comments

Rushmore Casino
With an enormous $888 Welcome Bonus, a knowledgeable and helpful support staff available 24 hours a day, fast payouts and over 80 of the crispest and immersive Real Time Gaming powered games, Rushmore Casino is a sure bet. All USA players are always welcome!