Cyprus takes risky bet on casinos as Europe's largest gaming resort, the City of Dreams Mediterranean, is emerging on Cyprus's southern coast

Europe's largest gaming resort, the City of Dreams Mediterranean, is emerging from bulldozed vineyards and lemon groves on Cyprus's southern coast.

Looking like an Inca temple facing out to sea near Limassol, Hong Kong gambling giant Melco has a grand vision for its first casino in the EU.But its arrival could lead to new rivalries on the island -- divided since 1974 when Turkey invaded following a Greek-sponsored coup -- where the breakaway north is already home to no less than 34 casinos.

Gambling is an economic lifeline for the isolated Turkish Republic of Northern Cyprus (TRNC), which is only recognised by Ankara.Before the pandemic, tourism accounted for a crucial 15 percent of the south's GDP.

Melco already has thriving City of Dreams casinos in Macau and Manila, but so far it has been dealt a string of bad hands in Cyprus.

The pandemic delayed the opening, which is now set for the end of the year. Then came Russia's invasion of Ukraine and subsequent EU sanctions and travel bans on Moscow."Casinos are a sensitive subject" on the island, a Greek-Cypriot anti-money laundering specialist -- who asked to remain anonymous -- told AFP.

"I am very careful when I talk about it because you can get problems."

Casinos were not legalised in Cyprus until 2015. The powerful Greek Orthodox church had opposed them, and leftist former president Demetris Christofias feared they would bring "corruption".While most casino owners in the north are Turks, Erbil Arkin, who owns the powerful Arkin group, was born on Cyprus.