Ben Gurion Airport Arcade Projected to Generate 24 Million NIS Annually
An administrative petition revealed that Babylon's upcoming gaming arcade at Ben Gurion Airport's Terminal 3 is projected to generate 24 million NIS annually, with passengers paying 132 NIS for 20 minutes.
Inside the Lucrative Ben Gurion Airport Gaming Venture
A recent administrative petition has shed light on the massive financial potential behind the upcoming gaming arcade at Ben Gurion Airport, won by the Babylon company. The legal battle revealed that operating a 137-square-meter arcade with 30 gaming machines in Terminal 3 could generate around 24 million NIS annually.
The petition was filed by Play Game, a rival bidder that offered nearly double Babylon's royalty rate but was disqualified from the tender. The Tel Aviv District Court dismissed Play Game's petition outright, ordering the company to pay 30,000 NIS in legal expenses. However, the court documents exposed fascinating financial details about the project.
Projected Revenue and Passenger Estimates
According to data submitted by Babylon to the court, the company plans to invest 6 million NIS in setting up the arcade. Using a conservative estimate, Babylon projects that about 180,000 passengers a year—roughly 2% of all international travelers departing from Terminal 3—will use the facility, with the total number of departing passengers expected to reach 9 million by 2027.
"The average payment per passenger is expected to stand at 132 NIS for 20 minutes of play, meaning Babylon's annual revenue from operating the Ben Gurion arcade is projected to reach approximately 24 million NIS."
Out of this revenue, the Israel Airports Authority (IAA) is guaranteed to receive at least 4.2 million NIS, based on Babylon's commitment to allocate 17.7% of its annual gross revenue to the authority. While Babylon noted that companies typically pay 15% of their revenue, its higher offer helped secure the multi-year concession.
The Disqualification of Play Game
Play Game had offered royalties amounting to 30.77% of revenues, significantly higher than Babylon's 17.7%. However, the IAA disqualified Play Game's bid after determining that it was based on operating two separate arcades—one in Terminal 3 and another in Terminal 1—whereas the tender explicitly specified only a single arcade in Terminal 3, with Terminal 1 remaining an uncertain option.
Judge Gilad Hess ruled that Play Game's bid was based on a fundamental misreading of the tender and carried a high risk of being a loss-making enterprise that could ultimately harm public interests. The court's decision underscores the IAA's cautious approach, drawing on past lessons where retailers submitted inflated bids they ultimately could not fulfill.
