Operator News
Spain – Cordish expects 40 per cent of Madrid revenue to be non-gaming
By Phil - 1 June 2017
Cordish expects that 40 per cent of revenue generated at its planned Live! Casino! Resorts complex for Madrid will come from non-gaming according to the economic feasibility study presented to the Community of Madrid.
In May US casino operator Cordish Companies came back with revised plans in its attempts to build a casino resort just outside Madrid with plans to bring a beach to the Spanish capital for the first time. The €2.2bn complex in Torres de Alameda would now have a 15 acre manmade lake complete with beach at the centre of its new blueprint. It has also added a World Soccer Hall of Fame Museum to its initial plans along with cinemas, themed discos and a centre for e-sports. It was told to revise its initial plans by the local government two months ago.
According to estimates, the entire complex once it is completely up and running in all of its phases will generate €784m, of which €486.8m (62 per cent) will come from gaming. The second source of income will be generated by the 2,200 hotel rooms that it plans to build – €114.6m in the first year. Restaurants and bars will generate €101.6m. The 94,700 square meters of shops will account for €24.5 million, and the entertainment area of the new complex (theatres, cinemas and concerts), will account for another €24.5m. Meanwhile business conventions and events will generate €23.7m while office rental space will account for a further €7.3m.
During the first year of operation, which is planned for 2023, Cordish expects 7.7m visitors. It is expected that the resort will attract 677,000 tourists who will travel specifically to visit the new resort and who will then stay on in order to explore the region further. The company has also looked at the gaming demographic in the region and estimates that there are 4.3 million potential players in Madrid while a total of 42 million potential players would arrive via the local airport of Ifema. In addition there are those living at a distance of between 75 and 180 minutes away by car. Combined the potential player population amounts to 48.8 million, of which 3.1 million could bet at the complex. Each of them would provide an average profit per visit that would vary between €50 and €175.
While during the first year gaming will account for 62 per cent of revenues, it will remain the same for the second year, while during the third year it will rise to 63 per cent, which will continue into the fourth year while in the fifth year it will rise slightly to 63.5 per cent. VIP players will make up 26 per cent of gaming income.
In December Cordish announced plans to create a large scale hotel, casino and leisure complex near Madrid. The company said that it had chosen Madrid due to its already existing infrastructure, its increasing popularity amongst tourists and well developed transportation network. Initial investment could reach as much €2.2bn and could reach as much as €3bn if market conditions allow. The project will generate 56,433 new jobs, will drive tourism in the area and generate billions in economic development for the region.
