When it became evident that foreign investors were not going to benefit from changes to the UK gambling law, Harrah’s abandoned its joint venture plans with UK operator Gala. Since that time the world’s largest gaming company has reportedly moved its sights further into Europe, and a memorandum of understanding was signed earlier this month with the major gaming company in Slovenia, the state majority-owned joint stock company HIT.

A proposed gaming resort development in Nova Gorica, near the Italian border, would need the Slovenian government to make certain adjustments to the present gaming law. For a Harrah’s/HIT deal to prosper, the law limiting investors to no more than a 20% stake will have to change and the 38% taxation level be reduced. Such concessions are not beyond the bounds of possibility when an investment of around US$960 million is on the cards. Slovenia may feel that the job creation and future tourist dollars are well worth the risk of a slight rise in problem gambling.

After the press hysteria in the UK caused the government there to ignore its own well researched gambling draft, the cold light of day may have caused many to regret a lost opportunity. Areas in need of regeneration around Britain must now compete to convince a panel that their own case has the most merit for hosting the UK’s only casino in the style of Las Vegas. Tribal gaming in the US has brought prosperity to many previously deprived regions and their people, but the leisure centres, sports facilities and thousands of new jobs that an influx of foreign gaming investment would have brought to Britain are now going elsewhere.

According to reports, Harrah’s is prepared to invest as much as US$1.37 billion in two casino resorts in Slovenia and Spain. The Spanish project for Ciudad Real, 120 miles south of Madrid, includes an 850-room hotel, convention centre, 3,000-seat theatre and large spa, with construction scheduled to start next year for completion in 2008. It will be Spain's first Vegas-style casino complex and is to be known as El Reino de Don Quijote (Don Quijote Kingdom). Europe looks set to prosper from Britain’s inability to benefit fully from gaming deregulation. (E-11.30.05)

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