Tenerife initiates casino privatization scheme

In Spain, the government for the island of Tenerife has reportedly dismissed objections from a local labor union to commence a public tender for the right to own a trio of provincial casinos with the minimum asking price for all three having been set at €24.9 million ($29.2 million).

Trio of properties up for sale:

According to a Tuesday report from G3Newswire, the process to sell off the island’s state-owned Casino Santa Cruz, Casino Playa de las Americas and Casino Taoro was launched by the leader of the local council, Carlos Alonso, on September 24 and has given interested parties up to 45 days to submit an application.

Proceeds to fund ‘social health infrastructures’:

Alonso declared that any funds received from the privatization scheme are to be utilized to ‘finance social health infrastructures’ on Spain’s largest and most populated island, which every year welcomes in excess of 5.4 million tourists to enjoy its tropical climate, sandy beaches and volcanic mountain ranges.

Sale comes with stipulations:

G3Newswire reported that the government is now prepared to accept bids for one of more of the casinos although successful applicants must agree to spend at least €4.5 million ($5.2 million) over the next four years to expand or renovate any new venue they purchase. The three properties together employ some 121 locals with winning bidders moreover due to be obliged to keep these workers on until at least the end of 2020 while fully respecting their rights under Spanish labor laws.

Following the expiration of the 45-day application period for the properties in the island communities of Santa Cruz, Adeje and Puerto de la Cruz, local officials are to reportedly conduct a month-long financial vetting process before granting approved parties up to four months to submit a detailed bid.

Process launched despite objections:

According to the source, the future success of the Tenerife privatization could be fraught with difficulties after last month saw staff at the three casinos represented by the local chapter of the General Workers Union of Spain unanimously approve a measure to fight the process.

The trade union later proclaimed that the sell-off has ‘nothing to do with the general interest and that of the workers’ while describing the two-year job guarantee provision as ‘unacceptable.’

Plan follows 2014 disappointment:

G3Newswire reported that this is not the first time that the local government has tried to sell off one of its casinos after it attempted to get rid of the Casino Playa de las Americas property in 2014. Despite declaring that it had attracted interest from at least three parties, the island’s leaders were eventually left disappointed after no formal bids were ever received.