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Harrah’s Gives Up On Slovenian Resort

After over two years of negotiations, American casino operator fails to reach agreement with Hit Group.

Friday 11th April 2008

Slovenian casino operator Hit Group has announced the suspension of talks with Las Vegas-based Harrah’s Entertainment Incorporated on the construction of a $1.2 billion entertainment park in the west of the small European state.

The announcement follows over two years of negotiations between the two and follows important concessions in gaming legislation made by the Slovenian Government in order to open the way for Harrah's investment. The nation announced last summer that it was prepared to alter legislation governing domestic gaming companies to allow foreign investors to own up to 49 percent rather than the current 20 percent along with cutting the tax on profits from gaming to 17.5 percent from its current 38 percent level.

The two companies stated last year that they would create of a joint venture company as soon as the law had been changed in which Hit would hold a 51 percent stake with the remaining owned by Harrah's in order to build the park by 2010. The joint venture mega-entertainment park was expected to be one of the largest of its kind in central Europe and was designed to include hotels with over 650 rooms, a 2,000-seat congress centre and more than 3,000 gaming machines and 120 gaming tables.

'The two companies concluded that they could not find a solution that would meet the interests of both,' read a statement released by Ljubljana-based Hit.

“It was not possible to define a managing structure that would fulfil the interests of the Hit Group for a balanced development of Nova Gorica as a tourist destination and granting, at the same time, Harrah's expected influence in the new joint company.'

 


Source: OnlineCasinoNews