Limassol, Cyprus. The City of Dreams Mediterranean casino-resort has failed to meet revenue expectations, according to documents set to be discussed at the House on Monday. The findings appear in a risk analysis and management report accompanying the gaming authority’s 2026 budget.
Turnover below projections and strategic uncertainty
The report states that Melco’s turnover is lower than projected, while weakened share performance on the New York stock exchange compounds strategic uncertainty.
Licence and investment
Melco has held the exclusive licence to operate a casino resort and satellite casinos since 2017, following an investment exceeding €600 million.
Factors cited in underperformance
The report links the underperformance to a global economic slowdown, regional instability in the Middle East and Levant, and increased volatility in financial markets.
Risks to Cyprus casino operating model
According to the analysis, it cautions that any revision of Melco’s commitment, or a potential withdrawal, would generate economic, social and institutional risks for the casino operating model in Cyprus.
Competitive pressures
Casino resorts in Greece and the United Arab Emirates are expected to attract regional and international visitors, while illegal online gambling providers and casinos operating in the north continue to undermine the local market.
Outlook and priorities for the next three years
The report describes the next three-year period as one of intense strain, requiring the authority to balance heightened expectations, technological investment and escalating risks. “Strategic advantage will be judged by the ability to rapidly integrate information, adapt institutionally and strengthen the social and regulatory role with transparency and accountability,” the report says.
Gaming authority 2026 budget
The authority’s 2026 budget is balanced, with revenues and expenditure of approximately €3.68 million.
What impact do you think increased regional competition could have on Cyprus’ casino market?
