A recent tussle over the licensing rights for two prominent casinos in Portugal, Casino de Lisboa in Lisbon and Casino do Estoril in Cascais, has sparked attention in the gaming industry. Estoril Sol SGPS SA, principally owned by the Ho family, currently manages both casinos. The impending expiration of the 15-year license at the close of December 2022 prompted an international tender, drawing bids from both Estoril Sol and a Spanish competitor, Bidluck. The latter’s offer of €20m surpassed Estoril Sol’s bid, setting the stage for a critical evaluation and decision by the Portuguese Government.
Overview of the Casinos:
Casino do Estoril stands as a monumental gaming hub in Europe, boasting a 91-year legacy encompassing an array of attractions—slot machines, gaming rooms, restaurants, and a sizable 1,000-capacity theatre. Managed by Estoril Sol, this establishment holds cultural significance and remains a key player in the region’s entertainment landscape.
In addition to the iconic Casino do Estoril, Estoril Sol oversees the Casino de Lisboa and the Casino da Póvoa do Varzim in northern Portugal. Furthermore, the company holds licenses for online gambling and sports betting, diversifying its reach within the industry.
Financial Outlook and Ownership Structure:
Despite the challenges posed by recent times, Estoril Sol reported revenues of $132m in 2021, experiencing a slight dip from $136m in 2020. Finansol, a holding company primarily owned by members of the Ho family, exerts a controlling interest with a 57.8 percent stake in Estoril Sol, maintaining a pivotal role in the company’s operations and decision-making processes.
Leadership Dynamics:
The Ho family’s involvement in the gaming sector extends beyond Estoril Sol. Pansy Ho, Stanley Ho’s eldest daughter, currently serves as Chairwoman of Estoril Sol, overseeing its strategic direction. Notably, Daisy Ho, another member of the Ho family, assumed the role of Managing Director at SJM Resorts last month, signaling the family’s continued influence and engagement within the gaming industry.
Evaluation of Bids and Future Implications:
The competitive bidding process between Estoril Sol and Spanish Bidluck has thrust the fate of these revered casinos into uncertainty. Estoril Sol acknowledged Bidluck’s superior offer in a recent regulatory filing, emphasizing the higher value of the rival bid. As the Portuguese Government evaluates the tenders, the decision will hold substantial implications for the future management and operations of these casinos, impacting the industry landscape in Portugal.
The unfolding developments surrounding the casino license bidding war in Portugal underscore the significance of strategic decision-making, financial competitiveness, and industry dynamics within the global gaming sector. The outcome of this bidding process will not only determine the management of iconic casinos but also shape the trajectory of key players like Estoril Sol and the Ho family within the gaming and entertainment domain.