132 shekels for 20 minutes: How much Babylon will earn from the playroom at Ben Gurion Airport
An administrative petition filed by Play Game against Babylon's winning of the Israel Airports Authority tender to operate a playroom at Ben Gurion Airport has revealed the expected revenue data. Babylon will invest 6 million shekels in establishing a complex with 30 machines on 137 square meters, and estimates that about 180,000 passengers per year (2% of departing travelers) will pay an average of 132 shekels for 20 minutes of play. The expected annual revenue: about 24 million shekels, of which at least 4.2 million shekels (17.7% of revenue) will go to the IAA.
An administrative petition filed by Play Game against Babylon's winning of the Israel Airports Authority (IAA) tender to operate a playroom at Ben Gurion Airport has revealed the expected revenue data for the project. Babylon, which is currently building the new gaming complex in Terminal 3, will invest 6 million shekels in construction and install 30 gaming machines over an area of 137 square meters. According to data submitted to the court, the company estimates "conservatively" that about 180,000 passengers per year, representing 2% of all departing international passengers through Terminal 3, will use the playroom. The average payment per passenger will be 132 shekels for 20 minutes of play, and the expected annual revenue from operating the playroom is about 24 million shekels. Out of this amount, at least 4.2 million shekels will be transferred to the IAA, based on Babylon's commitment to allocate 17.7% of annual revenue. Play Game, which submitted a bid nearly double that of Babylon (royalties of 30.77%) and lost the tender, petitioned the Tel Aviv District Court. The petition was dismissed on the spot, with court costs of 30,000 shekels imposed. Judge Gilad Hess ruled that Play Game's bid was based on an incorrect reading of the tender, as it referred to operating two playrooms in Terminal 3 and Terminal 1, while the tender referred to only one playroom. The IAA argued that the high bid was loss-making and could harm the public, similar to the case of Office Depot, which offered exceptionally high royalties in a duty-free tender and struggled to meet them.
132 shekels for 20 minutes: How much Babylon will earn from the playroom at Ben Gurion Airport