Mohegan Gaming withdraws from resort casino project in Greece
Nov. 4—MOHEGAN — Mohegan Gaming and Entertainment is no longer involved in an integrated resort casino project it was licensed to develop with a partner in Athens, Greece.
Financial considerations caused MGE to bow out, according to a company statement.
"MGE has conducted a comprehensive review of its operations and future commitments against the new backdrop created by the COVID-19 global pandemic and concluded that we would not continue to pursue the concession rights for the Athens Project," the statement issued Thursday reads. "We are also focused on the large undertaking at Inspire Korea, which will consume the next few years. While we know this is a disappointment to many, it is the right decision for our company and its stakeholders."
In a filing posted online last week with the U.S. Securities and Exchange Commission, MGE reported it had transferred all of its equity ownership in the Athens project to its partner, GEK Terna, previously the minority investor in the project.
"The Company and GEK Terna coordinated the equity transfer with the requisite government officials in Greece," the filing says, noting the Hellenic Gaming Commission approved the transfer on Oct. 22. The transaction is subject to further regulatory review.
GEK Terna, a conglomerate based in Greece, was expected to pursue the project with another partner.
MGE, whose holdings include Mohegan Sun and other gaming enterprises around the U.S. and in Canada, was granted a casino operating license by Greek authorities in October 2020. It had joined GEK Terna in submitting a development plan that called for a luxury hotel, premier entertainment venues, a convention center, a casino, shopping, dining and other amenities. The distinctive two-tower design was inspired by the Caryatids, the sculpted female figures that support the Parthenon, the ancient temple atop the Acropolis of Athens.
Dubbed Inspire Athens, the billion-dollar project is part of the proposed redevelopment of the former Hellinikon airport property, an undertaking whose overall price tag has been put at $9 billion.
As recently as this past March, James Gessner Jr., chairman of the Mohegan Tribe and the MGE Management Board, said MGE was committed to the Inspire Athens project.
Ray Pineault, MGE's president and chief executive officer, said in an interview last month that stabilizing the company's finances in the wake of the COVID-19 pandemic was the company's top priority. He said MGE was negotiating final financing for the integrated resort it's developing in Incheon, South Korea. A fall 2023 opening is targeted, he said.
