How Failed EuroVegas helped the Spanish Casino Industry
When Sheldon Adelson recently gave up on EuroVegas, it seemed like a major blow to the Spanish casino industry. After all, Adelson had huge plans to build a $30 billion project on the outskirts of Madrid, which would’ve instantly made Spain’s capital a top casino destination. However, the deal fell apart when the country’s government refused to allow smoking on EuroVegas’ property and lower taxes on the future establishment.
Strangely enough, this failure has actually given the Spanish casino industry a much-needed shot in the arm. Two new casinos have opened in Madrid after Adelson pulled the plug on EuroVegas. Pedro Olmedo Franco, who’s a director at the Casino Gran Madrid, believes that EuroVegas’ exit paved the way for Gran Madrid to open. “The arrival of a giant like EuroVegas meant that we had to do something and couldn’t just stand still,” he said. “We probably wouldn’t be here now.”
Casino Gran Via also took advantage of the opening and the license that Madrid granted them. Up until the city became Adelson’s proposed site for EuroVegas, Madrid enforced a long-standing ban on casinos within an 18-mile radius of its corporation limits.
Government officials are really hoping that these casinos can help stimulate Madrid’s economy. Two years ago, all of Spain was mired in a banking crisis. So many of its major cities were plunged into debt and the banking sector needed an international bailout. The country’s unemployment rate is also sky high at 26 percent.
At least Casino Gran Madrid and Casino Grand Via have helped out a little in the unemployment department. Gran Madrid has generated 200 new jobs and relocated 250 employees from the company’s other establishments. Gran Via has created 270 new jobs within Madrid.
Sure this isn’t the thousands of jobs that EuroVegas was on the verge of creating. But it’s definitely a nice consolation for a city that could use some more tourism, jobs and tax revenue.