New York Times – Even though Sheldon G. Adelson, the American billionaire casino magnate, abandoned his plans for a $30 billion casino and leisure resort on the outskirts of Madrid last month, he has nevertheless helped get the roulette wheels spinning here for the first time in almost a century.
In mid-December, Mr. Adelson dropped plans to build a resort with six casinos, known as EuroVegas, after the Spanish government refused to accept his demands for financial concessions. Just days later, however, two small casinos opened in central Madrid, operated by Spanish companies that applied for new licenses in the wake of the EuroVegas plan.
“The arrival of a giant like EuroVegas meant that we had to do something and couldn’t just stand still,” said Pedro Olmedo Franco, a director of the Casino Gran Madrid, one of Madrid’s two new casinos. Without the EuroVegas project, he added, “we probably wouldn’t be here now.”
Unlike some other Spanish cities, Madrid had a longstanding ban on any casino operating within an 18-mile radius of the city center. But it was effectively lifted when its authorities started to compete against Barcelona to lure Mr. Adelson, who had decided to locate his project in Spain. While negotiating with Mr. Adelson and under pressure from Spanish operators concerned about unfair competition from EuroVegas, Madrid decided to also grant two other licenses for smaller Spanish rivals to open casinos in the heart of the city.
Before last month’s opening, Grupo Gran Madrid already owned three other casinos in Spain, with combined revenue of 28 million euros, or roughly $38 million. Madrid’s other new venue, Casino Gran Vía, is owned by Grupo Comar, which has several casinos across Spain and the Dominican Republic, which generated combined revenues of about €110 million last year.
The two new Madrid casinos differ in style, but required comparable investments — about €20 million for Gran Madrid and €15 million for Gran Vía.
Neither operator said it could provide earnings details so close to their opening. Mr. Olmedo Franco said Gran Madrid had made “a slightly weak start” during the Christmas season. On a recent evening there, several gambling tables stood empty.
In emailed answers to queries, Javier García, the general director of Grupo Comar, said he was “very satisfied” with the debut of Gran Vía, located at a century-old avenue. The casino has recently averaged 1,500 visitors a day, each paying an entrance fee of €9 and required to bet a minimum of €2.5. Mr. García forecast a profit for this year, without providing specifics. He also said the new casino was opened “independent” of EuroVegas and other business developments.
