The competition for Austria’s soon-to-become-available casino licenses is heating up.

From neighboring Switzerland, interest is now being shown by Swiss Casinos. The operator of five existing casinos and winner of the coveted Zurich license—that property is scheduled to open in 2012—Swiss Casinos is considering entering the race.

“We are examining the offer,” Erwin Cresta, project leader for Swiss Casinos, told Switzerland’s Tagesanzeiger. “Our lawyer has received the papers. We are in contact with the Austrian finance ministry.”

Of particular interest to Swiss Casinos is the license for Bregenz, which is just over the far northeastern border of Switzerland. Two of the operator’s Switzerland properties are in the region, and Zurich is just over 100 kilometers away.

Bregenz holds more than geographical interest, however. The existing Casinos Austria property there reportedly was the leading earner for the group in gross gaming revenue in 2010. Bregenz GGR of €35 million even surpassed the Casinos Austria Vienna property, which took in €32.5 million.

The Bregenz license will be just one in the so-called “city packet,” which consists of Bregenz, Vienna, Salzburg, Innsbruck, Graz and Linz. The winning bidder will receive all six licenses. The Austrian finance ministry estimates that in total the six will do €120 million in GGR annually.

All casino licenses in Austria are currently held by Casinos Austria. The city packet licenses will become available at the start of 2013. Another six licenses will open up after 2015. In addition, the government has created three new casino licenses and one poker concession license.

Another contender recently announced is Merkur Entertainment AG, a venture between German AWP manufacturer and operator Gauselmann and Frank Stronach, founder of the car parts supplier Magna and one of the wealthiest people in Austria.

The English-language Austrian Times reports that Stronach, 78 and retired from Magna, holds one-third of Merkur Entertainment and Gauselmann two-thirds.

Rolf Falke, head of Gauselmann’s casino division, will be CEO of Merkur Entertainment. As second CEO Stronach has named Tillmann Fuchs, former head of Austrian TV station ATV and the head of Stronach’s horse-racing track Magna Racino near Ebreichsdorf, Lower Austria.

Besides a strong showing in finance and industry knowledge, Falke brings political clout to the table. Chairing the Merkur Entertainment board is Günter Stummvoll, the current head of the finance committee in the Austrian parliament. Also on the board is Franz Schnabl, former inspector general of the Vienna police and SPÖ MP, who is still well-connected to the party, according to Der Standard.

For its part, Casinos Austria is expected to try to win as many licenses as possible. Also participating in the race is Austrian slot producer and operator Novomatic.

The applicants have until January 13 to submit their proposals for the city packet licenses.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.