Government rules out Manoel Island casino as it scraps approved permit

OPM says permit allowing casino, residences and offices 'will not be executed' • Government committed to retain public ownership of Lazzaretto site

Updated at 3:42pm with OPM clarification

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.

The OPM further clarified that government intends to retain public ownership of the Lazzaretto site.