5. Holland Casino - priva1za1on
• 2012: government decision to sell HC (not a core business)
• 2014: policy vision “renova-on of the casino regime”
• 2016: Parliament and Senate
• Late 2017: start priva-za-on à evalua-on casino law within 7 years
• HC will be turned into a Limited Company (shares owned by State) with 4 subsidiaries
• 2 new licenses will issued, making a total of 16 licenses
• HC will be sold as a cluster of 10 licenses/casinos, including the brand name (and online
license?) à auc-on
• HC expected having to give up one casino in 4 of the 5 regions
• 4 + 2 licenses will be sold independently, possibly excepted from auc-on process
• HC board of 10 casinos not involved in selec-on process
• Next lefer from Wiebes to Parliament will disclose more details (e.g. 4 casinos)
• New situa-on: 2 – 7 licensees (more likely 4 according to SIRA consul-ng)
• Licenses valid for 15 years (Engelmann/ECJ Sept.2010 and EU Direc-ve award of concession
contracts into force per 18.4.2016)
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7. Priva1za1on process – some of the issues
• Which 10 casinos included in HC cluster à which 4 separate
• Before final sale à decision from ACM about undesired market dominance
• What physical assets are being acquired by cluster and 4+2
• How are costs divided (incl. carve out costs for both HC and HC Pension Fund)
• How will common/shared infrastructure be shared/sold/priva-zed among mul-ple acquirers
• What happens to 1m+ data base, which was built up over 14 casinos
• Control of personnel costs à too high
• What are the required qualifica-ons of candidates
• What level of informa-on through (2-stage) RFP process
(first short list of qualified bidders, who get detailed RFP)
• Valua-on factors for cluster of 10 and 4+2 licenses
• What -metable can we expect …..
Determining the range of desired outcomes prior to embarking on a RFP process, together with a
clear understanding of what changes may and may not be permifed, is central to an efficient
priva-za-on.
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