New Gaming Zone at Ben Gurion Airport to Generate Millions

Babylon is set to open a new gaming hall in Terminal 3 of Ben Gurion Airport, projecting annual revenues of approximately 24 million shekels. The company estimates that visitors will pay 132 shekels for 20 minutes of play. These financial details emerged from a lawsuit filed by competitor Play Game against the Israel Airports Authority's tender results. The Tel Aviv District Court dismissed Play Game's preliminary claim, ordering them to pay 30,000 shekels in legal costs.

Babylon plans to invest 6 million shekels in the 137-square-meter facility, which will feature 30 gaming machines and simulators. The company conservatively estimates that 180,000 passengers, or 2% of those flying internationally from Terminal 3, will use the facility annually. With an estimated 9 million international passengers expected through Terminal 3 by 2027, Babylon anticipates significant income.

Under the tender terms, Babylon will pay the Israel Airports Authority 17.7% of its revenue, a higher rate than the company typically pays. Play Game had offered the authority a much larger share, 30.77% of revenue, but their bid was rejected. The Airports Authority cited past instances where companies offering exceptionally high revenue shares failed to meet their obligations, such as Office Depot's failed electronics store tender in 2018.

The Airports Authority also stated that Play Game's offer was based on operating two gaming halls, one in Terminal 1 and another in Terminal 3, whereas the tender mandated operation in Terminal 3 only. While Play Game later claimed they could maintain their offer for a single hall, the tender committee deemed their financial calculations inconsistent with the tender's conditions. The court agreed, finding Play Game's bid unrealistic and potentially detrimental, noting it was nearly double the next highest offer and significantly exceeded the industry standard of around 15% revenue share.