Remo Monzeglio spoke exclusively with Focus Gaming News: the withdrawal of an investment group, the interest of a new one, how the elections influenced the process, and why the online gaming project is important to attract investors.
Uruguay.- Moments of uncertainty are being experienced in Carmelo after the deadline for the reception of offers was extended again within the framework of the call for tenders to operate the Hotel Casino Carmelo.
It was known that the investment group that had acquired the specifications in August that enabled the presentation of a project within the deadline that expired yesterday, November 28, withdrew from the call.
Remo Monzeglio, Undersecretary of Tourism of Uruguay, spoke exclusively with Focus Gaming News and detailed that this group, which had held a meeting with him in Buenos Aires, had shown a very firm interest in the call.
“They sent executives by helicopter to visit the place, hired architects from Carmelo, a law firm from Uruguay, and began to develop the project,” explained Monzeglio and added: “Until last week they were in constant contact with us, on November 24 they called to ask specific questions about the presentation, but on Tuesday, November 26 in the afternoon I received a call in which they told me that the group was ultimately not going to present itself.”
However, the official revealed that there is another investment group that could join the contest for the specifications. “Four weeks ago, a group that had not heard of the call for tenders contacted me and expressed their interest in participating, I explained to them that the call was in an advanced process and that a group had bought the specifications and had the project ready, and they only had 20 days to buy the specifications and assemble the project, but I told them that in case no offers were received, we would continue to extend the deadline,” detailed Monzeglio.
And he added: “When I received the call that the other group was not going to present the project, we automatically extended the deadline until January 10, initially, and I contacted this group to let them know that they can consider presenting themselves. They sent a letter of intent expressing their desire to manage a hotel with a casino in Uruguay.”
On the other hand, Monzeglio referred to some points that could have delayed the project. On one hand, he explained that at this time the situation of the new casinos is mainly to see if one day they will have the possibility to access online gaming: “In Uruguay, the day online gaming is legalized, those who have a physical casino will be able to access a license, there lies the interest they have shown over these four years.” It should be noted that the project that would legalize online gaming is still delayed in the House of Representatives.
Also, the official made a point to acknowledge that another event that happened last weekend that cannot be overlooked are the presidential elections that resulted in Yamandú Orsi, the opposition candidate, winning: “Any electoral process creates a stop, generates uncertainty, caution, that's why we have extended the deadline,” said Monzeglio and added that they would have preferred that the deadlines had been set before the elections, but “the deadlines are not whimsical,” he affirmed.
Finally, the Undersecretary of Tourism of Uruguay emphasized that these 10 groups that over these four years have expressed their interest in operating the hotel and casino, come battered by the pandemic.
“As far as I am concerned, until the last day that there is a possibility to move this project forward I believe we must keep insisting, the worst we can do is do nothing,” emphasized Monzeglio who assured that he has “put his soul” into this project because his interest is that Carmelo has an international category hotel and provide sources of employment.
The call includes the sale of two plots, belonging to the Ministry of Tourism and where the hotel is located, and the concession of the exploitation of gambling for 20 years renewable for the same term.
The sale is conditioned to the construction, completion, and operation of a five-star hotel, while the casino license involves the payment of an annual fee, composed of a percentage of gross revenues.
The base price for the sale of the real estate plots N° 2.682 and N° 2.683 of the city of Carmelo (which consist of approximately 10,459 m2) will be 14.020.078 Indexed Units (USD2.126.720). It should be noted that this amount will be converted to Uruguayan pesos at the exchange rate of the day before the public deed by which the transfer of ownership is to be made.
