Baltimore-based Cordish Companies recently presented to the regional government of Madrid, Spain, a proposal to build a .2 billion, 300-acre casino resort, Live Resorts Madrid. It would be the first Las Vegas-style casino resort in Europe, said Chairman and Chief Executive Officer David Cordish. “I’ve never been more confident that there’s a market for this. The difficulty was putting it together,” he said, noting it took three years and negotiations with hundreds of landowners to purchase the real estate.
Cordish said no major resort has been developed in Europe because of the challenges of assembling a large site.
“It doesn’t exist, in my opinion, not because it won’t work. It doesn’t exist because people can’t put together the land mass. There isn’t in Europe anything like what we’re doing, so we thought it was worth the effort and the money and the time,” he noted.
Cordish stated the first phase of the development would have a hotel, gaming and retail. He noted completing the development, which would be privately funded, would take up to a decade. When complete, Live Resorts Madrid is expected to include 2,700 hotel rooms in three towers, plus more than 1 million square feet of retail; 275,000 square feet of convention and meeting space; 450,000 square feet of offices; 125,000 square feet of gaming; and 200,000 square feet of entertainment venues including theaters, comedy clubs and concert halls, all anchored by a central plaza.
Cordish said the company, which was founded by his grandfather in 1910, is looking beyond the U.S. because opportunities for domestic gaming projects are becoming increasingly rare. He said the firm also is exploring Canada and Asia. Cordish Companies owns properties across the U.S., including Maryland Live, the state’s largest casino that generated more than $550 million in revenue through October this year. The company also is planning a new casino in Philadelphia.
Partner Joe Weinberg said Cordish hopes the Madrid regional government will approve the project within six months. Regional government President Cristina Cifuentes said, “I want to be cautious, but it looks good.” The company estimates the project would create more than 56,000 permanent and construction jobs and generate more than $4 billion in economic activity over five years. Cordish said the resort would attract more than 675,000 visitors in its first year—European tourists who are not seeking historic or cultural experiences. “If you live over there, you’re already used to cobblestone streets. They’re going to come visit this,” Cordish said.
Although most European casinos are small operations that generate an average of $11.3 million, a 2016 report by Pricewaterhouse Cooper agreed, stating, “It’s clear that there is a significant opportunity to implement the IRC model in Europe, and do it successfully. The economic conditions are right, the fundamentals are strong and the consumers are there.”
Previously, Sheldon Adelson’s Las Vegas Sands proposed a massive EuroVegas casino resort outside Madrid in 2013. Although some restrictions on gambling operations in the Madrid area were lifted during negotiations over the Las Vegas Sands project, it failed to materialize.
