After failing to come to terms with the government of Spain, Las Vegas Sands (LVS) is pulling the plug on plans to build a major resort and gambling destination in the country.
Spanish media outlets say that LVS and the Spanish government disagreed over the company’s demand for investment guarantees and compensation if the country decided to changed laws affecting the resort in coming years. LVS issued a statement saying that it could not envision a way forward for the development, the Wall Street Journal notes.
The resort and casino — dubbed Europa Vegas — would have been located on 1,853 acres west of Madrid, a region which has suffered economically in recent years. It was expected to feature 12 hotels and six casinos, creating as many as 200,000 jobs.
LVS had been in negotiation with the Spanish government for years to build the large resort. Spanish officials said that the talks had teetered on the edge of failure in recently months due to a range of new demands from LVS.
Shares of LVS rose almost 1% in Friday pre-market trading.