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Casino du Liban Chalks Up Best First-Half Profits In 40 Years30 August 2000LEBANON –Aug. 30, 2000--As reported by The Lebanon Daily Star: "Casino du Liban chairman Elie Ghorayeb said on Tuesday that his restructuring program had boosted the casino's profits and put it in its best financial position for 40 years. "Ghorayeb said the casino had made pre-tax profits of nearly $10.6 million so far this year, compared with $7.3 million in the same period of 1999. The figures have not been audited. "… He said that the casino's pre-tax profits for the whole year would be about $22 million. However, Ghorayeb said, this target could only be achieved if the Shura Council, the highest legal body in the country, agreed to exempt the casino's slot machines from taxes. "Finance Minister George Corm told the casino earlier this year to pay nearly $23 million in back taxes on slot machines for 1997, 1998 and 1999. "… According to the 30-year contract that the casino signed with the government in 1996, the casino would pay 30 percent of its gross revenues as tax in the first 10 years. But the contract did not specify whether slot machines should be exempted from taxes. "… Brushing aside the critics who say that the casino would face bankruptcy if it paid all the taxes on slot machines, Ghorayeb said that the casino had more than $20 million cash reserves in banks. "… Ghorayeb said that his restructuring program did not please everybody. "…Many of the board members have called for Ghorayeb's removal, arguing that the chairman is not fit to run the casino. "…Ghorayeb has also said that the contract with Abela and London Clubs, which each collect around $6 million annually from the casino in return for managing the gaming, is "very unfair" to the casino. "…Abela owns 15 percent of the casino. Intra Investment Company owns a 51 percent stake. "Ghorayeb has been pressing for the amendment of the contracts, arguing that the casino can save millions of dollars each year. "… Abela and London Clubs accuse Ghorayeb of withholding payments of more than $5 million since 1999. "…The contract with Abela and London Clubs expires in 2006. Asked about the casino's expansion plans, Ghorayeb said that 40 slot machines were added this year. "We also intend to hold several international concerts and beauty contests this year," he said…" |