On Friday, US casino operator Las Vegas Sands revealed that it will no longer pursue its planned investment for a gambling resort just outside of the capital of Spain. Sands intended to inject more than $30 billion in the mega-casino project. However, the gaming group said that it is looking to invest aggressively in opportunities in the Asian region.
Reuters noted that the decision to drop the investment in Spain will be a major blow to the country's economy as it attempts to revive it after a slump in the last five years.
The government of Spain had rejected some of Sands' demands, which include compensation guarantees in case there would be legislative changes in the future according to Spanish newspaper El Mundo early Friday.
The project was dubbed as "Eurovegas," which will include 12 hotels, six casinos and a plethora of shops. The report added that the project could create up to 250,000 jobs, which was a welcoming prospect as Spain has a 1:4 ratio in unemployment. However, the project encountered a series of obstacles and delays in the past few months.
Chief Executive Sheldon Adelson and Las Vegas Sands had been wanting to get an exemption from the country's smoking ban, which resulted to local politicians in Mexico picking sides with the legislation of the central government as efforts to make the project happen.
Spain already suffered a blow early this year when it failed to win a bid to host the Olympic Games. Madrid lost for the third time. On the other hand, Spain is banking on the Eurovegas project as one of the major boosts in its economy. The number of Madrid's visitors fell by a fifth in August as compared to the figure the same time the previous year. Popular seaside city Catalonia of Barcelona, on the other hand, saw a 12% increase in visitors.
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