Malta's government has formally ruled out a casino on Manoel Island and confirmed it will renounce planning permit PA 4716/23, which had authorised a casino, residential units and offices on the historic Lazzaretto complex.

The Office of the Prime Minister confirmed the move in response to questions, stating plainly that the permit "will not be executed." The decision follows the withdrawal of the concession previously held by MIDI plc, which had held development rights over the site. With MIDI no longer holding legal title, the government said it will formally renounce the permit and has categorically excluded any casino development on the site.

The government went further than shelving the gaming element alone. It also ruled out the residential and commercial components contained within the same permit, stating that its plans "do not include the construction of additional buildings to be used for residential or commercial purposes." The permit had originally been approved in 2012 for the rehabilitation and reconstruction of the Lazzaretto complex, encompassing a casino, offices, residential units and an underground car park, before being renewed in 2023 under its current reference. A previous Nationalist-led administration had waived the casino concession fee in exchange for the restoration of Fort Manoel.

The OPM's statement came a day after an NGO protest against the Planning Authority's separate approval of 30 padel courts on Manoel Island, with campaigners warning that incremental commercial approvals risked opening the door to broader development, including a long-speculated casino.

The government described Manoel Island as a site of historical, cultural and environmental significance and committed to "significant green investment" aimed at creating public open space for families and the wider community. That framing aligns with earlier signals about transforming the island into a national park following the termination of the MIDI concession.

One question remains unanswered. The OPM did not respond to whether it is committing to retain public ownership of the area covered by the now-redundant permit, leaving the governance and management structure of the Lazzaretto site unresolved. A detailed masterplan for the island's transformation has also yet to be published.

The statement nonetheless marks the clearest and most binding position the government has taken on the Lazzaretto complex's future, effectively closing the door on one of Malta's more contentious long-running development debates.