ruguay’s Ministries of Tourism and Economy have put out an international call for bids for the private operation of a casino, El Observador reported. The invitation to tender arose from a private proposal submitted early this year by Fosara (Grupo Cipriani) to build the Cipriani Ocean Resort & Club Residences Punta del Este.
Regulations in force outline that this type of license can only be granted through a bidding process initiated by the executive or by means of private proposals received by the government. Moreover, there is a clause in Enjoy Punta del Este's contract which sets forth that the operator has exclusive rights over the gambling floor, provided that no other businesses equal or surpass the investment and fee.
The investment amount must be equal to or higher than USD 160 million. The bidder must also undertake to pay an annual fee to the government, calculated on the basis of the casino’s gross revenue.
The minimum annual fee will amount to USD 7.8 million in the first year, with an annual increase of USD 100 thousand until 2026. After that, the fixed amount must be proposed by the bidder and that sum must be equal or higher than USD 8.4 million.
The license to operate the casino will last 20 years as of the finalization of the construction and set up of the hotel and casino. Even though the company led by Giuseppe Cipriani has a certain advantage over the other, the bidding process is open to any interested parties. Bids can be submitted until January 20.