Club Hotel Casino Loutraki, situated in Greece, has had its share of financial turmoil, however, the casino was successful in a court battle against the government over back-tax. The Tripoli Administrative Court of Appeal made the decision during last week that the government was fallible to increase the casino’s tax tariff to 33% from 20% during 1996. As a result of the decision, the casino’s new tax rate is going to be 22%, an increase of 2% as the casino will make a contribution to the municipality.
The court’s decision in favor of the casino means that the government will have to refund the casino’s tax payments. The casino will receive 40 million euros refund for the 2008-2011 tax payments and another 18 million euros for its payments in the years 2012-2015. The refundable amounts are exclusive of interest. With the interest included in the total refund to Loutraki, the government is liable to pay the casino a total of 70 million euros. The court ruled that the casino was not eligible to claim any tax payments prior to 2008. Had the casino been eligible to claim the tax prior to 2008, the government would have to pay the casino 450 million euros.
The casino was closed impermanently in 2015 as it was unable to pay taxes. The court ruled that the creditors of the casino were entitled to take forty percent the casino’s revenue. Furthermore, the court ruled that the casino was given a 15 year period in which to settle the outstanding amount.
The Casino’s Licence
The court’s ruling of the casino’s compulsory repayment may mean that the casino will be in possession of its license indefinitely. The indefinite license will appeal to potential investors who have been interested in purchasing the casino as of late. The government has implemented a new legislation for casinos, which means that there will be at least three casinos established on the islands of Crete, Mykonos, and Santorini.
The casinos will be permitted to offer elite players a waging credit limited to 50,000 euros. The government’s permission is a strategy to elicit the interest from foreign gamblers to visit the country.