Filenews 30 January 2026 - by Eleftheria Paizanou
Despite high expectations, Melco's investment in Cyprus with the creation of the City of Dreams Mediterranean casino-resort in Limassol, did not yield the expected revenue for the company, as it records a turnover lower than expected.
Also, the company's stock market performance in New York has weakened, which raises reasonable concerns about Melco's long-term trading strategy in Cyprus.
The specific findings are recorded in the risk analysis and management report, which accompanies the budget of the Gaming and Casino Supervision Authority in Cyprus, which will be discussed next Monday in the parliamentary Finance Committee.
The Gaming Authority is the competent body for supervising casinos in the Republic. Melco has held the license to operate resort casinos and satellite casinos exclusively since 2017 and will hold it for a period of 15 years. The company invested more than €600 million in the construction of the casino resort in Cyprus, but the coronavirus pandemic, as well as the war turbulence in the Middle East, caused it many obstacles.
According to the risk report forwarded to the Parliament, the non-performance of the plans creates strategic risks for inability to meet the casino's operational obligations, with indirect but significant effects on the revenues and the mission of the Gaming Authority. At the same time, it is pointed out that the possibility of withdrawing or revising its commitment entails economic, social and institutional risks for the operating model of the casino-resort and, by extension, for the regulatory role of the Authority.
Fears of competition
According to the risk analysis, the fall in Melco's turnover and the possible loss of monopoly status constitute serious strategic threats. At the same time, competition from casino resorts in Greece (Elliniko) and the United Arab Emirates is expected to worsen the performance of the local market. As pointed out, casino resorts in Greece and the Emirates are expected to offer attractive options to international and regional audiences of high purchasing power.
Although the National Gaming Authority does not have direct competition in the land-based casino in Cyprus, it must nevertheless prepare for possible pressures for market liberalization or if the monopoly model currently applied is changed. At the same time, the threat of indirect new entries is high, due to online illegal providers that operate online and advertise on platforms outside Cyprus.
In addition, gambling establishments in the occupied territories are a direct and natural competitor, both in terms of pricing and attractiveness for tourists. The increased presence of illegal online providers and casinos in the occupied territories limits the effectiveness of supervisory control.
According to the conclusions, the Authority institutionally strengthens its function as a data-driven and preventive regulator, applying a unified risk management model, adapted to the national and global reality. The approach incorporates the specifics of resort casino investment, regulatory monopoly, the threats of illegal and digital gambling, and increased societal requirements for player protection and good governance.
It is indicated that the period 2026-2029 is shaping up to be a period of intense liquidity, during which the Authority is called upon to balance between increased requirements, new technological capabilities and intensifying risks. The budget of the National Gaming and Casino Supervision Authority for 2026 is balanced with revenues and expenditures of €3.6 million.
