Mohegan Gaming pulls out of Greece in blow to Elliniko casino resort

US based Mohegan Gaming and Entertainment has decided to pull out of the casino resort complex to be built at Elliniko, owned by Lamda Development, citing weaker financial gains from the project due to the pandemic.

In October 2020, a consortium between the company and Greece's GEK Terna had been selected by the Hellenic Gaming Commission as the provisional contractor to develop an integrated resort and casino at Elliniko, southern Athens.

Since then Mohegan Gaming conducted a comprehensive review of its operations and future commitments against the new backdrop created by the COVID-19 global pandemic and concluded that it would not continue to pursue the concession rights for the Athens Project, it said in an SEC filing.

The company has since then transferred all of its equity ownership in the Athens Project to GEK Terna, previously the minority investor in the project. GEK Terna has not commented on the withdrawl of Mohegan Gaming from the project.

The casino resort, had been labeled Inspire Athens, in a 1 billion euro showpiece project for the urban complex, that will include a luxury five star hotel with nearly 3,500 beds, along with exhibition and meeting areas.

Mohegan Gaming and GEK Terna coordinated the equity transfer with the requisite government officials in Greece, including approval by the Commission on October 22, 2021, the company added in the filing.