(Y.Z) Queenco Ltd

(Y.Z) Queenco Ltd, commonly known as Queenco, is an Israeli public company whose shares trade on the Tel Aviv Stock Exchange. It operates in the hospitality and casino sectors, developing and owning land-based entertainment centers and casinos, primarily in European and emerging markets. Its subsidiary Queenco Leisure International Ltd (QLI) describes itself as an emerging-market land-based entertainment centers and casino developer and owner. The company was incorporated in 1992 under the name Okey-Dokey Investments Ltd and listed on the Tel Aviv Stock Exchange in early 1993. In May 1998 businessman Yigal Zilkha became the controlling shareholder, and in November 1998 the company adopted its current name, (Y.Z) Queenco Ltd. Queenco's business grew out of Zilkha's earlier career organizing junkets of Israeli gamblers to casinos in Atlantic City, Las Vegas and the Caribbean. The company went on to hold interests in major casino projects, most notably the Loutraki casino in Greece, the Rhodes casino, a casino in Belgrade, Serbia, and the Palace Casino in Bucharest, Romania. Its Greek casino interests were held through Club Hotel Loutraki S.A., in which Queenco held a 40% stake, and its Rhodes operation through Casino Rodos S.A., in which it held roughly 91%. The Loutraki casino, opened in September 1995, became a major success, generating substantial annual profits in its early years and attracting around a million visitors annually. The global financial crisis of 2008 and the subsequent Greek economic crisis severely damaged the company's casino revenues, pushing it into losses. A dispute with partners in its main holding, the Loutraki casino, added to its difficulties. In late 2010 the company began developing a joint venture in Cambodia comprising a hotel, casino and complementary tourism businesses. It sold its stake in the Palace Casino in Bucharest in 2012. In 2016 Queenco signed an agreement to sell the Loutraki casino for EUR 8 million, but the deal did not close; in August 2020 it announced the sale of the casino for only EUR 2.5 million. The company's controlling shareholders are Yariv Lerner and Yigal Zilkha.

Queenco was incorporated in 1992 as Okey-Dokey Investments Ltd. In January 1993 it published a prospectus and its shares were registered for trading on the Tel Aviv Stock Exchange. In May 1998 Yigal Zilkha became the controlling shareholder with 90% of the company's issued capital, and in November 1998 the company changed its name to its current form, (Y.Z) Queenco Ltd. Zilkha had begun his business career organizing junkets of Israeli gamblers to casinos in Atlantic City, Las Vegas and the Caribbean islands, earning generous commissions. He later entered the casino business directly, and Queenco became the vehicle holding that activity. In 1995 a group of Israeli investors won a concession to operate the Loutraki casino in Greece, in which Zilkha held about a 35% share of the partnership. In 1999 Queenco received a casino concession on the island of Rhodes as well. That same year the company sold control of the shell company Mali Lasers to businessman Teddy Sagi, after having bought it two years earlier for only USD 50,000. The company's activity was redirected to credit-card clearing and electronic billing for online gambling sites, pornography sites and adult dating sites, later under the name SafeCharge. In 2006 Queenco acquired a casino and restaurant located in Bucharest from Zilkha and his partner, businessman Freddy Robinson, an activity they had held privately. In March 2007 Queenco acquired the public company Shahar HaMillennium from Freddy Robinson; Shahar HaMillennium was a partner in the casino business through its subsidiary Resido Tourism and Recreation Development. In June 2007 it announced the issuance of the subsidiary Resido Tourism and Recreation Development, renamed QLI (Queenco Leisure International), on the London Stock Exchange. In July the issuance was completed, raising EUR 111 million at a valuation of EUR 505 million. Following the global financial crisis of 2008 and the subsequent Greek economic crisis, the company's casino revenues collapsed and it began accumulating losses. A dispute also arose between the company and its partners in its main holding, the Loutraki casino. Nevertheless, at the end of 2010 it began establishing a joint venture in Cambodia comprising a hotel, casino and complementary tourism businesses. Regarding its operating assets: the company held 40% of Club Hotel Loutraki S.A., which held the concession to operate a casino in the resort town of Loutraki on the Gulf of Corinth in Greece. The project began in 1994 when the Greek Ministry of Tourism issued tenders for casino operating licenses at various sites, under a law passed by the Greek parliament permitting 12 casinos across Greece, with no additional casino licenses to be granted for 12 years (until then only three casinos operated in Greece, all state-owned). Initially the company was held by two groups: Club Hotel Eilat Ltd, owned by businessmen Moshe Bublil and Nisan Hakshuri, and Resido F.B. Ltd, a private company owned by the publicly traded companies Queenco and Millennium (controlled by businessman Freddy Robinson). In February 1995 the company received the concession after paying USD 4.5 million in license fees, presenting USD 10 million in equity and paying USD 7 million to the municipality of Loutraki. The project committed to creating 1,050 jobs for area residents (310 during construction and 740 for operating the casino and hotel). Under the license terms the Loutraki municipality was a partner in the project, with its share growing over the years so that at the end of the concession period (after 50 years) it would pass to municipal ownership. Businessman Freddy Robinson, an experienced construction contractor, managed the casino construction project, completed in about seven months. The casino opened to the public in September 1995 and immediately became a success story. The building, with a total area of 6,000 square meters, operates 600 gaming machines and 70 tables for roulette, blackjack and other games. Visitor numbers quickly reached about one million per year. From its third year of operation it began generating a net profit of about USD 25 million per year, after paying a turnover tax of 33% to the Loutraki municipality and the Greek government. Casino entrance fees were also transferred in full to the Greek government. In February 2000, 20% of the casino's shares were sold to Piraeus Bank for USD 162 million, reflecting a valuation of USD 810 million for the casino. In the early 2000s the casino enjoyed great success, a hotel and conference center opened alongside it, and its annual revenues reached about EUR 400 million. Between 2002 and 2004 the casino earned about half a billion shekels. However, disputes among shareholders harmed its functioning, and following the Greek economic crisis of 2009 the casino's revenues collapsed and it began operating at a loss. In 2016 Queenco signed an agreement to sell the casino for EUR 8 million, but the deal did not materialize. In August 2020 Queenco announced its sale for only EUR 2.5 million. Queenco held about 91% of Casino Rodos S.A., which in June 1996 received a license to operate a casino in the Rose Hotel owned by the Greek state and located on the island of Rhodes. The company leases the hotel from the municipality of Rhodes under a lease agreement until 2026. The casino began operating in September 1999. In December 2005 a subsidiary of Queenco won a tender to acquire an exclusive 10-year license to operate a casino in Belgrade, Serbia, in partnership with Casinos Austria, owned by Austrian-Jewish businessman Martin Schlaff. It paid EUR 18 million for the license. In June 2007 the first part of the Belgrade casino opened. In February 2008 construction of the casino was completed, with 25 tables and 220 gaming machines. The Palace Casino Bucharest was acquired by Queenco in April 2007. It had operated in Bucharest, Romania since 1995. In 2012 Queenco sold its holding in the Palace Casino. Queenco also held a license to establish a casino in the city of Constanța, Romania, which was cancelled. The controlling shareholders of the company are Yariv Lerner and Yigal Zilkha.

• 2020

  Announced sale of Loutraki casino for EUR 2.5 million (August).

• 2016

  Signed agreement to sell Loutraki casino for EUR 8 million; deal did not materialize.

• 2012

  Sold its holding in the Palace Casino Bucharest.

• 2010

  Began establishing a joint venture in Cambodia comprising a hotel, casino and complementary tourism businesses.

• 2008

  Construction of Belgrade casino completed with 25 tables and 220 gaming machines (February).

• 2007

  Acquired Shahar HaMillennium (March); announced and completed IPO of subsidiary QLI on London Stock Exchange raising EUR 111 million (June–July); acquired Palace Casino Bucharest (April); first part of Belgrade casino opened (June).

• 2006

  Acquired a casino and restaurant in Bucharest from Yigal Zilkha and Freddy Robinson.

• 2005

  Subsidiary won exclusive 10-year license to operate a casino in Belgrade, Serbia, in partnership with Casinos Austria.

• 2000

  20% of Loutraki casino shares sold to Piraeus Bank for USD 162 million.

• 1999

  Received casino concession on Rhodes; sold control of shell company Mali Lasers to Teddy Sagi; Rhodes casino began operating in September.

• 1998

  Yigal Zilkha became controlling shareholder (May); company renamed (Y.Z) Queenco Ltd (November).

• 1996

  Casino Rodos S.A. received license to operate a casino in the Rose Hotel on Rhodes.

• 1995

  Group of Israeli investors won concession to operate Loutraki casino in Greece; Loutraki casino opened in September.

• 1993

  Published prospectus; shares registered for trading on the Tel Aviv Stock Exchange.

• 1992

  Company incorporated as Okey-Dokey Investments Ltd.

Emerging-market land-based entertainment centers and casino developer and owner.

• Loutraki Casino

  Casino in Loutraki, Greece, opened September 1995; 6,000 sqm with 600 gaming machines and 70 tables; held via 40% stake in Club Hotel Loutraki S.A.

• Casino Rodos

  Casino on Rhodes, Greece, opened September 1999; held via ~91% stake in Casino Rodos S.A.; operates in the Rose Hotel leased until 2026.

• Belgrade Casino

  Casino in Belgrade, Serbia; exclusive 10-year license won December 2005; first part opened June 2007; completed February 2008 with 25 tables and 220 gaming machines.

• Palace Casino Bucharest

  Casino in Bucharest, Romania, operating since 1995; acquired by Queenco in April 2007; stake sold in 2012.

1. 1Queenco - Leisure International Ltdqueenco.com
2. 2(Y.Z) Queenco Ltd on Wikidatawikidata.org
3. 3קווינקו – Wikipedia (Hebrew)he.wikipedia.org