High Stakes For Italian Enclave As Europe's Biggest Casino Goes Bust

INSUBCONTINENT EXCLUSIVE:
after its main source of income -- a giant casino -- went bankrupt."SOS Campione is dead" reads a giant banner hung opposite the immense
casino, made up of modernistic cubic-shaped blocks with darkened windows stretching 10 floors high."Rien ne va plus" -- the French version
of "no more bets" -- reads another banner on a tent set up by the unions representing some 500 casino employees, who suddenly found
southern Switzerland, the closure of the public casino has been devastating.For decades, it guaranteed the prosperity of the town, 23
kilometres (14 miles) from Italy."Those who were lucky enough to be born here, were lucky enough to have a job," Fiorenzo Dorigo, who worked
at the casino for 21 years, told AFP."Once you were done with your studies and military service, you reunited with all of your old school
mates" working at the casino, he said.But that comradery and income security evaporated last July, when a local Italian court in Como
ordered the casino to close after it failed to honour its financial obligations to authorities in Campione, which is part of Como
Russian artist, living in Campione since 2012.The typical "Italian positivity", which used to distinguish the village from the surrounding
Swiss communities, "is not obvious anymore," she told AFP, looking sadly out the window of her paint-splashed studio.But residents still
hope for the casino's resurrection.A Milan court recently overturned the Como legal ruling on the grounds of procedural inconsistencies.And
last month, the Italian government sent an expert to evaluate the possibilities of bringing the casino back to life.Inhabitants are
demanding that Rome comes to the rescue."Campione is Italian
Italy cannot just abandon it
It must take all possible steps" to save the enclave, unionist Vincenzo Falanga told AFP.EspionageCampione has a long and rich history.In
the year 777, a wealthy trader and landowner named Totone donated Campione -- later renamed Campione d'Italia under the rule of dictator
Benito Mussolini -- to the monastery of Sant'Ambrogio in Milan, which became part of Italy in 1797.The picturesque enclave, which with its
winding walkways and hills covered in cypress and palm trees offers a magnificent view of the lake, has a unique status.Inhabitants pay
taxes to Italy, but almost everything else is Swiss, including the currency, car registration number plates, telephone lines and rubbish
collection.It is also a tax haven: there is no sales tax and inhabitants benefit from a generous tax break to compensate for the cost of
living, which is also very Swiss -- meaning high.A gaming establishment was first opened in Campione in 1917, but its main purpose was to
spy on foreign diplomats during World War I, and it closed two years later.It reopened in 1933 thanks to a decree, which remains in effect,
requiring the casino proceeds to cover all municipal costs.The casino, with its high-rollers, showered Campione in riches for decades,
allowing the tiny enclave to dream big -- too big, according to some.Competition, online gamblingIn 2007, after seven years of construction,
accommodate 3,100 gamblers at a time, offering them 56 tables and around 1,000 slot machines to choose from.But new laws permitting slot
machines in bars and cafes and the rise of online gambling have gradually whittled away the house winnings.The strengthening of the Swiss
franc against the euro, as well as the opening of three large Swiss casinos nearby since 2000 have also taken their toll.Over the past
decade, as the casino's profits fell, so too did the town's fortunes.The mayor quit, the nursery school shuttered and the tourist office is
aid distributions."Campione has not seen a situation this difficult since the war," said Giorgio Zanzi, the administrator sent by Rome to
run things after the mayor left.His office is chilly: Campione can no longer afford fuel to keep the heating on, and municipal employees
have not been paid since February 2018.The casino and municipality have together raked up millions in debt, Zanzi told AFP, adding, though,
that he was still holding out hope for a rescue.As a result of the downturn, Campione had no candidates for Sunday's local elections and has
save Campione have been discussed, from investing in tourism or new technologies to the creation of an advantageous tax scheme for
businesses.But time is of the essence.The situation will soon become even more complicated: Next year, the enclave is due to become part of
the European Union customs area, raising practical questions about interactions with non-EU member Switzerland.Authorities in Bern say
feed.)