Presented as a package deal
Three casinos on the island of Tenerife in Spain’s Canary Islands will be sold and privatized under a new public tender. According to island officials, the gaming halls will be sold for a total of €24.9 million (US$29 million), with the proceeds to be used “to finance social-health infrastructures” on the island.
According to CDC Gaming Reports, the casinos are located in Adeje, Puerto de la Cruz and Santa Cruz. Bidders must be willing to invest at least €4.5 million (US$5.25 million). According to the terms and conditions, the total tourism project must be complete within four years to complete and should be related to the running of the casino. The new operator must also employ the current 121-member staff for at least two years after the sale.
Interested companies have 45 days to submit their applications. Each company will undergo a 30-day legal and financial review, followed by a four-month period in which bids will be accepted. The government wants to sell all three properties in a package deal, reported G3Newswire.com.
In 2014, lawmakers tried to sell the Playa de las Américas casino on the southern coast of Tenerife; though three operators expressed interest, no buyer ultimately materialized. The Puerto de la Cruz Casino is located in Tenerife’s main tourist resort in the north of the island. The Casino Santa Cruz is located in the five-star Iberostar Grand Hotel Mencey in Santa Cruz.
The sale will not go down well with unions, CDC reported. In August workers for all three casinos in Tenerife protested the move. According to the General Workers Union of Spain, the privatization “have nothing to do with the general interest and that of the workers.” The union also said the two-year job guarantee for workers is “unacceptable.”
