Babylon to Earn Millions from New Ben Gurion Airport Gaming Zone

Babylon is set to open a new gaming and entertainment complex in Terminal 3 of Ben Gurion Airport, with projections indicating significant revenue for both the company and the Airports Authority. The company will invest NIS 6 million to establish the 137-square-meter facility, which will feature 30 gaming machines.

Babylon estimates that approximately 180,000 passengers annually, representing 2% of international travelers, will utilize the gaming zone. Based on an average spending of NIS 132 per passenger for 20 minutes of play, Babylon anticipates annual revenues of around NIS 24 million. The Airports Authority is expected to receive at least NIS 4.2 million, representing 17.7% of the annual revenue, though Babylon typically pays 15%.

The project's financial viability was challenged by Playgame, a competitor that bid nearly double Babylon's royalty rate at 30.77%. Playgame filed an administrative petition against Babylon's win, claiming their bid was based on operating gaming zones in both Terminal 3 and Terminal 1. The Airports Authority disqualified Playgame's bid, stating it was based on a misinterpretation of the tender, which only specified a single zone in Terminal 3, and that Playgame's offer was potentially loss-making and detrimental to the public.

The Tel Aviv District Court dismissed Playgame's petition, ordering them to pay NIS 30,000 in legal costs. The court agreed with the Airports Authority, finding Playgame's bid to be based on an incorrect reading of the tender and potentially problematic due to its significantly higher offer compared to others, which deviated from economic assessments suggesting a 15% royalty rate for the authority.