Cordish Optimistic Over Revised Madrid Casino Application

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Thursday, May 25th, 2017 | Written by Stephen Smith

Madrid is going through a period of economic redevelopment and tourism growth, leading casino operators to see the Spanish capital as a potential hot spot to locate a new European integrated casino resort. Unfortunately, efforts to obtain the licensing required in order to move forward with the project has proven challenging.

Past Rejection

Back in 2013, the Las Vegas Sands Corp toyed with the possibility of submitting a proposal to build a $30 billion casino resort in the dormitory town of Alcorcon in the Madrid metropolitan area. In the end, though, Sheldon Adelson reportedly foresaw too many barriers standing in the way of getting the project off the ground, which is a lesson that the American developer firm called The Cordish Companies is only now beginning to learn the hard way.

Infrastructure Concerns

Previously, Cordish submitted a formal proposal for a €550 million casino property to be located in the Torres de Alameda dormitory town of Madrid. Two months ago, however, the regional government of Madrid rejected the proposal, putting the firm all the way back to square one.

In the summary given with the rejection, Madrid’s regional government cited a number of concerns about the proposed casino resort. First and foremost, the government estimates that Madrid would need to spend €340 million to develop the infrastructure needed to support a casino resort located roughly 30 kilometers east of Madrid. The government also felt that the proposal was lacking in the necessary sports and cultural facilities that would be needed for the property to be eligible for tax breaks through Madrid’s CID Integral Development Center.

A New Proposal

The Cordish Companies was not deterred by the rejection, though, and rather than simply abandoning its plan, the company reworked its proposal and submitted a new one for a €2.2 billion overall investment that will begin with an initial phase worth €587 million investment. Commenting on the proposed integrated casino resort, the company’s CEO, Joe Weinberg, stated:

“Europe’s largest offer of resort style hotels, gastronomy, all kinds of entertainment, shops and events for residents, families, tourists, congresses and conventions.”

Here are some of the details on the new project:

– The proposed resort will cover a 92-hectare area.

– A 500-room hotel and convention center will be located on the property. The complex will include a variety of restaurants, boutique shopping and five-star amenities.

– A 6-hectare, eco-friendly lagoon will be constructed by The Cordish Companies to provide surfing, kayaking and beach activities. Hotel guests will be permitted to use the area for free, and the public will have access to it at a small fee.

– Roughly 10 to 15 percent of the total project area will be devoted to gambling.

– A World Soccer Hall of Fame Museum will be built on the property. Indoor and outdoor concert venues, a movie theater, a circus and facilities for music, dance and theatrical performance will also be included in the resort area.

– The Cordish Companies has pledged to create 56,000 local jobs with the project. No subsidies or grants will be required from Spain or Madrid to pay for the project.

Cordish Optimistic

Now, it will be up to the Madrid regional government to approve or deny the project. We’ll have to wait and see if The Cordish Companies can win big now that they’ve raised the stakes. In the meantime, the Cordish CEO Joe Weinberg, has expressed his optimism that this time around the project will finally get off the ground, and as he stated recently:

“We don’t see any rational reason why the project would be rejected. The project is a great opportunity for Madrid, which would become a global leader in the sector; no investment is needed [by the regional government], it will create jobs, along with billions in economic activity; furthermore, we are the only company that has requested a CID, we are the only people prepared to invest money, enthusiasm and passion in the project.”