A number of IR projects went afoul in Spain
The council of state in Extremadura, Spain has ruled that a new integrated resorts bill is “in accordance” with the constitution. The decision could open the door to legal IRs in the autonomous region, which is set on the border with Portugal and has been called the portal to Spain. The legislation must now go before the regional parliament, according to Casino Review.
The bill was first presented to the legislature in March by the Independent Socialists of Extremadura. President Guillermo Fernández Vara has confirmed there is at least one foreign investor interested in opening a resort complex there.
Casinos in the new resorts reportedly would pay a fixed tax rate of 15 percent, though the government is reportedly considering a reduction of up to 80 percent in that rate depending on the total amount invested and the range of facilities included in a project.
The new initiative is part of a plan to attract investment to the area as the government faces down a €300 million (US$347 million) budget shortfall.
Opponents of the bill point out that several large-scale casino resort projects in Spain have failed, including EuroVegas; Live! Resorts Madrid Spain in the capital region; and Gran Scala in Aragon. Uncertainty continues to surround Hard Rock Entertainment World in Catalonia.
Álvaro Jaén, secretary general for Podemos in Extremadura, said the government must not fast-track the bill when so many details remain unfinished. “It rolls out the red carpet for someone who hasn’t even explained what it is they want to develop,” he said.
Warwick Bartlett, CEO and founder of Global Betting and Gaming Consultancy, said Spain is “an ideal location for an integrated resort. They have the weather, the food and beverage at affordable prices and a workforce that understands the importance of tourism.”
But Extremadura may not be the right place to start, he added. “Extremadura’s location is quite remote from the main cities of Spain and it has no international airport. So to get there you would have to go to Madrid then fly internally, this is not conducive to the development of a major international resort.”
