Government rules out Manoel Island casino as it scraps approved permit

The government has categorically ruled out the development of a casino on Manoel Island and said it will renounce a planning permit approved in 2012 and renewed in 2023 that envisaged a casino, residential units and offices following the withdrawal of the MIDI concession.

In replies to questions sent by MaltaToday, the Office of the Prime Minister (OPM) confirmed that planning permit PA 4716/23, which renewed an earlier permit for the redevelopment of the Lazzaretto complex, will not be implemented because MIDI no longer holds legal title over the site.

"MIDI plc no longer holds a legal title over the site following the withdrawal of the concession, and permit PA 4716/23 will not be executed," the OPM said.

It added that "the government will renounce the permit and categorically rules out any development of a casino on the site in question."

The reply also rules out the residential and commercial elements envisaged in the permit, stating that "government's plans do not include the construction of additional buildings to be used for residential or commercial purposes."

The response comes a day after an NGO protest against the Planning Authority's approval of 30 padel courts on Manoel Island. Activists had warned that this approval could pave the way for further commercial development, including long-speculated plans for a casino.  

The permit in question renewed a planning permission originally approved in 2012 for the rehabilitation, restoration and reconstruction of the Lazzaretto complex. The development included the reuse of buildings as a casino, offices and residential units, together with an underground car park. The permit was renewed in 2023 under reference PA 4716/23.  A previous PN-led government had waived the casino concession fee in return for the restoration of Fort Manoel.

The OPM also outlined the government's broader vision for the Lazzaretto site in Manoel Island.

"Given Manoel Island's historical, cultural and environmental significance, the government's priority is to preserve and enhance the site through significant green investment, creating a high-quality public open space that can be enjoyed by families and the wider community for generations to come."

The reply answers MaltaToday's first three questions by confirming that the approved permit will not be implemented, outlining the government's intention to create a green public space, and explicitly excluding a casino and new residential or commercial buildings.

However, the government did not answer a fourth question asking whether it was committing to retain public ownership of the area covered by permit PA 4716/23.

The clarification marks the clearest statement yet from government on the future of the Lazzaretto complex following its decision to terminate the MIDI concession and transform Manoel Island into a national park.

While the government's response removes the possibility of one of the island's most controversial long-mooted developments, questions remain over the future management of the Lazzaretto site, as well as the detailed masterplan that will guide the transformation of Manoel Island into a public park.