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In June 2014, the parliament of Spain's autonomous community of Catalonia announced its intentions to grant six gaming licenses to operate land-based casinos in the province of Tarragona as part of its Barcelona World (BCN World) project, which is expected to open in 2017.
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The construction of BCN World is expected to cost €4.7 billion to create a lavish entertainment complex with plans for world-class hotels, casinos, a theme park, water park, golf course, beach club, convention center, meeting theater, offices, shopping centers, restaurants, and swimming pools.
Melco International, a gaming company controlled by Hong Kong billionaire Lawrence Ho Yau Lung, initially submitted two separate bids for licenses with one of the bids involving a joint venture between the company's MelcoLot subsidiary and the Spanish company Veremonte. The other bid was submitted by Melco Property Development, a subsidiary created for the purpose of operating in the upcoming entertainment district.
On Friday, Melco announced that it has ended its partnership with Veremonte, providing no reason for doing so. Instead, the company plans to obtain a license to operate a casino under its sole-bid.
The partnership with Veremonte appeared to be a natural fit when it was announced last year. Veremonte is a company run by real estate developer Enrique Bañuelos, who is one of the key promoters of BCN world along with other partners including the Catalan government. However, according to Macau Business Daily, many Spanish newspapers reported that Veremonte has been experiencing difficulties raising the necessary funds for the project.
It is also reported that Veremonte is expected to withdraw from a joint-bid submitted with the Hard Rock Café International. A bid with Caesars Entertainment Corp was already rejected, failing to make it to the second phase.
Despite MelcoLot and Veremonte terminating its partnership, the company's hopes of operating a casino in BCN World remain optimistic. According to Friday's filing, MelcoLot has entered an agreement to conditionally purchase the 99 percent of Melco Property Development for HK$502.92 million. The purchase is subject to Melco Property Development's bid for a casino license to be approved, along with other conditions.
The filing further states that Melco should know whether its bid for a casino license in Tarragona will be approved or not by the second quarter of 2016.
Lead image courtesy of deviantart.net.
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(Spain).- Spain is attempting to restart its stalled BCN World integrated resort zone with a new name and 50% less casino space.
On Thursday, the government of Spain’s autonomous Catalan region unveiled its revised plans to develop a tourist-friendly resort zone in the villages of Vila-seca and Salou on the Costa Daurada.
The long-delayed project, which had operated under various names (EuroVegas, BCN World) since it was first announced in 2012, is now operating under the decidedly unsexy umbrella of the Center for Recreation and Tourism (CRT).
Under the latest plan, the CRT will now feature a maximum of two casinos, down from six in the original scheme. Furthermore, the total amount of space occupied by these two casinos has been halved to 30k square meters, equal to about 4% of the overall tourist zone, which has also been scaled back from 1m square meters to 750k.
The project may end up with only one casino, depending on who wins the tender. As it stands, there are three pre-approved contenders: America’s Hard Rock International, a combo of Spanish firm Grup Peralada and Malaysia’s Genting conglomerate, and a tandem of Lawrence Ho-controlled firms, Melco International Development and MelcoLot.
Spanish media reported that Melco and Hard Rock are expected to make a combined pitch – just as they’re cooperating on their Cyprus casino bid – and if their bids are accepted, each will be allowed to build its own casino. But if the Grup Peralada bid wins the day, it will be the only casino permit issued.
The applicants will have to pay a deposit of €2.5m and be willing to spend up to €2.5b to build their Spanish projects. The lucky recipients will pay 10% tax on their gaming revenue as well as a further 1% toward cultural projects in the province of Tarragona.
Despite the delays in arriving at this latest plan, the government appears to be in no hurry to get underway, as the winning bidder(s) apparently won’t learn their fate until sometime next year. The government says it hopes work will begin on the CRT by next summer.
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