Madrid’s Mayor Ignacio Gonzalez has just today revealed that the gaming tax in Madrid will be lowered from 45% to an amazing 10%. That will be the new tax bracket for any bricks and mortar casinos within the area.
The move was made primarily as it was effectively demanded by Sheldon Adelson who is the billionaire owner of the world famous Las Vegas Sands Corporation. This is due to the proposed €15 billion he is set to invest in the area to develop what is being called the EuroVegas Casino and Hotel Complex in the city.
Madrid does already have the lowest taxes for casinos in the whole of Spain with rates of between 22%-45% with other major cities in the country taxing up to 60% of revenue. This further reduction will no doubt ensure the creation of Europe’s biggest casino city, which in turn will bring millions to the city each year in added tourism.
The Development Plans!
It is no wonder that the Mayor Of Madrid is seemingly bending over backwards to get this development started, as there will be twelve resorts, three golf courses, a huge sporting stadium, nine luxury theaters and of course six large casinos.
The whole project is set to create a massive 250,000 jobs in the area as well as creating a huge boost to the already booming tourist industry.
One thing however is that online poker players should not be hoping that this tax reduction will spread into the online market, this is purely a local government decision based on reducing the high levels of unemployment which have reached a staggering 25%, the massive amount of investment the project will bring and the effect it will have at reducing the regional government debts.
With the tax issue the first hurdle that seems to have been crossed, the smoking laws will prove a much more difficult task. However, the billionaire is standing firm on it, with the assumption being that most gamblers are smokers.
There still does seem to be quite a large quantity of public opposition with the project though, with many thinking that the firm are simply asking too much of the city. Allegedly, they want the smoking ban in public places lifted so that gamblers can enjoy a smoke inside the casinos, whilst they also want changes made to the Spanish labor laws.
If the project is accepted the work will start as early as 2013, however nothing will move forward until these concessions have been fully met by the Spanish government.