EuroVegas Pulls the Plug

By Debra SaundersGoogle
In Spain, its new $30 billion resort plans to follow this trend have taken a massive dive.

The new gambling zone planned for Spain was set for the name EuroVegas, but the US casino operator funding the project has pulled out meaning the planned mega-resort is no longer something Europeans can expect to land on their doorstep. 40 million visitors arrive in Las Vegas on average every year with many of them Europeans. The EuroVegas would have harmed a small percentage of Las Vegas’s visitor numbers. Just a small percentage is a large amount of cash if you count the high rollers and the average amount spent per day in the Sin City.

Sheldon Adelson, who is part of Las Vegas Sands was the man behind rumours and plans for the Madrid casino resort project to get underway. The plans included six casinos, twelve hotels, golf courses, entertainment complexes, shopping malls, cinemas, restaurants and of course numerous bars spread around the resort. This would have given the Spaniards the chance to rebuild a perfect replica of Las Vegas learning from the mistakes made in the original construction of the city.

As all those who love gambling were getting excited at the prospect of having a resort that had potential to grow into something bigger and better than Las Vegas, Sheldon Adelson announced that the project would not be going ahead.

It’s a crying shame because the resort would have required almost a quarter of a million people to be installed into the complicated supply chain operations to feed the resorts host of services. Currently in Spain, unemployment rates are hovering as high as 25% of the population out of a country of 47 million citizens.

The reason the jobs will not be filled is indirectly due to the Spanish government. Those that be had reviewed the casino group’s bid to get the project underway, but rejected some of the terms and conditions Sheldon Adelson’s crew had suggested. One of those being a guarantee that if the Spanish government suddenly changed any legislations in regard to the law on gambling that would negatively affect the casino resort’s investment, then inflicted losses will be compensated.

Following the rejections the government did make counter offers, which were to ensure that taxes and legal affairs in the deal helped to protect the Spanish government and people. Soraya Sáenz de Santamaria, who is Spain’s deputy Prime Minister has announced that the Las Vegas Sands Group involved in the bid were not interested in the changes suggested by the Spanish government.

Reading between the lines, so at a guess, Sheldon Adelson saw a business opportunity in a country that needs investment, and so used that fact as a bargaining chip to get a better deal than usual as far as tax payments and profits leaving the country are concerned. However, despite the Spanish being in a bad situation, they didn’t want to give in to a deal that meant surrendering so much on tax revenue.

The extra revenue they could generate through income taxes and VAT in the casino resort would not have been enough to justify such as deal.

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