Winner of Casino Bid in Andorra To Be Revealed Soon

May 25, 2018 6:10 PM
  • CDC Gaming Reports
May 25, 2018 6:10 PM
  • CDC Gaming Reports

The government of Andorra, the tiny European principality nestled between France and Spain, has announced that it will reveal the winning bidder for its very first brick and mortar casino at the end of June. There are currently no fewer than thirteen proposals in play, submitted by a range of nine different firms including Spain’s Cirsa, Malaysia’s Genting, Partouche from France and Germany’s Merkur Gaming. A local Andorran firm, Cierco, is also vying for the license.

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The bidding process required a minimum bid of €10 million to be considered at all. In the end, the largest bids were put forward by Genting and Cirsa, both of which have committed a minimum of €140 million to the project if it goes ahead with their name on it. The Genting bid is a joint venture between Genting, who would retain 70% ownership, and three other investors, including Andorran businessman Marc Giebels van Bekestein. The other two individuals involved in the bid are Arc Resorts President Mark Vlassopulos, and David Gray, an investor from the UK. Genting’s plan involves a resort and hotel which would create 600 jobs during construction and a permanent 400 once in operation. Their proposal includes a spa and a gastronomy market. This would be Genting’s first venture into continental Europe were they to win the bid.

Cirsa have partnered in their bid with French casino firm Groupe Tranchant and have submitted two different bids, with separate construction sites proposed within each bid. As the two highest bidders are well-established companies in their own right, they are naturally considered the favourites in the bidding process. There is a twenty-year max duration limit for any license issued, and any operator granted such a license will be expected to abide by tax laws in the nation, thereby contributing to the principality’s coffers. The corporate tax rate, however, is very reasonable by international standards.

In the end, it’s an interesting location for a major casino: there is the obvious potential for drawing customers from both France and Spain, but, given that Andorra is land-locked, the casino could conceivably attract players from all compass points. The principality passed legislation permitting casino gambling back in 2016; this first casino is the natural consequence and intention behind the new laws. It’s no surprise that so many international outfits were vying to be the first with their foot in the door. It’s not often you get even a temporary monopoly on an entire country’s casino gaming.