Gran Scala

Harrah’s Entertainment, the world’s biggest casino operator by revenue, unveiled plans to enter Europe with two big casino-resorts in Spain and Slovenia, together worth $1.37bn, as it steps up aggressive international expansion.

Left to right: Sarkis Izmirlian, chairman, CEO of Baha Mar Resorts Ltd.; Gary Loveman, chairman, CEO and president of Harrah's Entertainment, Inc.; Steve Heyer, CEO of Starwood Hotels & Resorts Worldwide Inc.

US gaming companies eager to build in the UK following gambling deregulation were forced to focus elsewhere when the British government decided earlier this year to limit the number of big “Las Vegas-style” casinos to one from eight.

But Gary Loveman, chief executive of Harrah’s, said the projects in Spain and Slovenia were not in lieu of building in the UK.

“If the government in the UK were to change their minds this afternoon, we’d happily re-engage our plans there,” said Mr Loveman.

The company on Wednesday revealed plans for a $670m casino-resort under the Caesars brand in Ciudad Real, Spain, 118 miles south of Madrid.

The project, which will include an 850-room luxury hotel, shopping complex and spa, is a 60-40 joint-venture with developer El Reino de Don Quijote de La Mancha.

Harrah’s also announced plans to build a $700m luxury casino-resort in Nova Gorica, Slovenia, through a 50-50 partnership with the Hit Group, Slovenia’s largest casino operator.

Tax rates for the casino in Slovenia are still under negotiation, but Harrah’s aims for the 10 per cent rate agreed upon for its project in Spain. Plans in Slovenia are contingent upon clearing regulatory hurdles and changing laws that cap investment from non-European Union companies at 20 per cent.

Harrah’s plans mark the first move by a big US gaming operator to expand in Europe. But Mr Loveman deflected concern about European backlash.

“We’re not trying to sell Americana. Gaming has a much longer history in Europe than in the US,” said Mr Loveman.

The casino in Slovenia, located 150km from Venice, is expected to draw visitors from neighbouring Austria and Italy, as well as eastern Europe. It will not carry the Caesars brand because of its proximity to Italy. Hit operates eight of Slovenia’s 14 casinos.

The news follows Harrah’s announcement this month to build a $1.6bn casino-resort in the Bahamas with US hotelier Starwood Hotels & Resorts and developer Baha Mar Resorts.

Along with other big international rivals, Harrah’s is poised to submit a proposal to build a luxury casino-resort in Singapore.