The violence in the Palestinian territories and the resultant closure of the Oasis Casino in Jericho have resulted in Casinos Austria International Holdings GmbH getting cold feet and backing away from an earlier to buy back shares its subsidiary Casinos Austria International Limited (CAIL), the Jericho casino’s main shareholder.
An official statement released by Casinos Austria International Holdings blamed the security situation in the region for its decision not to proceed with the purchase. The physical damage to the facility, caused by Israeli gunfire, plus the inability of Israeli gamblers to visit the site, were the main reasons for its closure.
There was a degree of uncertainty regarding the exact amount of damage that had been caused. While Casino Austria said that the damage had been extensive, another company source intimated that it was mainly the building’s glass façade that had been harmed.
Still CAIL seemed resigned to the latest development, and stated that it would not seek to renegotiate terms with its mother company. Given the uncertainty of the situation, it said, it is unlikely that repair work will begin at the site for some time to come.
For the Palestinian economy, which counts the Jericho casino as one of its main money earners, as well as one of the largest private sector employers, the news is particularly bad and underscores the economic damage that is being caused by this current round of violence.
Neither is it good news for CAIL, which considered the Jericho facility as one its best gambling complexes. In 1999, its first full year of operation, it was largely given credit for CAILs net profit rising to $11.2 million, from the $5 million that was registered in 1998. – (Albawaba-MEBG)
