His demands having been rejected by the Spanish government, Sheldon Adelson has renounced EuroVegas, his $30 billion grand folly of 12 hotels, six casinos and 18,000 slots in Spain. Considering his hard-nosed stance that the company 
only concentrate on projects that can generate a 20% ROI, it’s always been difficult to understand why Adelson indulged in this white elephant as long as he did. Evidently Adelson upped his demands at the last minute, bringing an end to negotiations. One such obstacle was Adelson’s request for national exclusivity, along with governmental subsidies. Even with unemployment running at 26% (worse in younger demographics), the Spanish government decided it could afford to say “no.” Ironically, an attempt by Adelson to ban Internet gambling brought his project down.
So could Wall Street, which reportedly balked at having to foot $20 billion of the project cost. Adelson said Japan and Korea would be the company’s development priorities now. He added, “we do not see a path in which the criteria needed to move forward with this large-scale development can be reached.” Deutsche Bank analyst Carlo Santarelli was among the unsurprised, writing, “we think the ultimate decision to shelf [sic] the development was expected by most as Spain had drifted to the periphery as Japan has come more into focus.”
Speaking of follies, do you remember when MGM Resorts International was going to develop suburbs south of Las Vegas? Another souvenir of that project went bye-bye when MGM sold 90 acres for $12 million to a consortium includng Colliers International. The purchase was described as “speculative” which, given the lack of demand for raw land, is something of an understatement.
MGM remains the frontrunner for a casino in Prince George’s County, in Maryland However, Greenwood Racing has doubled its capital commitment to highway improvements, to $200 million. The decision is coming down the stretch, hence Greenwood’s Hail Mary pass. Its proposal would be by far the largest of the three (Penn National Gaming has the third). MGM’s proposal (above) is a favorite at this time, in large part due to its proximity to feeder markets like Arlington and other bedroom communities.
No news is good news when you’re Melco Crown Entertainment.
