Spain Looks To Annual $19bn Casino Boost For Economy

Back in June, Spain issued its first wave of online gambling licenses as the cash strapped country with a contracting economy and a 25% unemployment rate sought to embrace an industry estimated to be worth around €680 million by 2015.
Now, the government has given the go-ahead for a new $22 billion ‘EuroVegas’ gambling resort to be built near Madrid, a move which it is believed will boost tourist spending by €15 billion ($19.2 billion) each year. Commenting on Spain’s aspirations for Europe’s biggest casino complex, chairman of Promomadrid Jesus Sainz, said:
“It will change the dimension of our economy. It will have an impact on our gross domestic product of between four and five points.”
The ambitious project is the brainchild of billionaire Sheldon Adelson, the CEO of Nevada-based casino company Las Vegas Sands, who now expect to  contribute around 30% of the project’s equity once funding is in place. All being well, work on the six casino,36,000 hotel room complex could start in a little over a year with its final phase completed in 10 years time.
Initially, choice for the location of EuroVegas was between Madrid and debt-ridden Barcelona, but last Friday the Las Vegas Sands settled on the Spanish capital, not least because Madrid also benefits from Barajas airport which has easy connections with around 250 cities worldwide. Following the announcement, Sheldon Adelson explained:
“Barcelona is an outstanding tourism destination, and choosing Madrid over Barcelona was not an easy selection. The regional government of Madrid has been a strong advocate for this potential development, and we are appreciative of the energy they have brought to this process.”
Nevertheless, while Madrid was celebrating the news, Barcelona had a back-up plan up its sleeve and also announced its own €4.8 billion ($6 billion) “Barcelona World” resort project. Once financing for the resort has been arranged, the project should take less time to get off the ground and will be built near Port Aventura theme park in one of Spain’s major tourist areas.
Although the Spanish economy should receive a boost when work on the projects is undertaken, not everyone in the country are pleased with the prospect. Opposition groups have expressed concern over the potential for crime, as well as the customary low paying jobs offered in the industry.