Why Las Vegas Sands gave up on Eurovegas

posted in news

This week marked some disappointing news in the gaming world as Las Vegas Sands announced that they’ll no longer be building Eurovegas in Spain. Eurovegas was set to be a massive $30 billion complex that would feature four casinos, 12 hotels, nine theaters and three golf courses. Spain, which currently has a 26% unemployment rate, was really looking forward to this casino complex and the millions of tourists it would’ve brought.

So why did the Sands Corporation give up on this dream European casino? Well the chief reason appears to be their commitment to capitalizing on a still-growing Asian market. Sands chairman Sheldon Adelson explained this by saying the following:

Developing integrated resorts in Europe has been a vision of mine for years, but there is a time and place for everything. Right now our focus is on encouraging Asian countries, like Japan and Korea, to dramatically enhance their tourism offering through the development of integrated resorts there… (Sands) did not see a path in which the criteria needed to move forward with this large-scale development can be reached. As a result we will no longer be pursuing this opportunity.”

As for the part of Adelson’s statement regarding criteria that couldn’t be met, he’s referring to both the tax rates and a smoking ban. Currently, Spain imposes really high taxes on both land-based and online casino operators. Adelson didn’t appreciate what he believes are excessive taxes.

The billionaire was also hoping that Spain would make an exception on their smoking ban for his casino. The country currently bans smoking in public places, but Adelson thought that this would hamper business at Eurovegas.

So it appears that the smoking ban and taxation drawbacks, coupled with a growing Asian market, were enough to kill Eurovegas for now.

Comments are closed.