Gambling: On the road to Morocco

The quest to find the next lucrative international gaming destination has landed in the Northern African desert of Morocco. Moroccan developers of a nearly 1,000-acre lakefront site near the city of Ouarzazate have asked Las Vegas-based Global Gaming Group of CB Richard Ellis to help find a casino operator for the location. The development is expected to have multiple uses, including residential, nongaming hotels, shops, entertainment and a golf course with golf course villas. The casino is planned on a waterfront site near Lake Mansour Eddahbi and will include a hotel.
John Knott, the Global Gaming Group's executive vice president, said the potential casino in Morocco could be worth $100 million in annual gaming revenue depending on what is built and how the infrastructure progresses surrounding what is being called the Ouarzazate Lake City development. Morocco, which attracts roughly 7.5 million visitors annually, is a Muslim country. Knott said the government supports the Ouarzazate Lake City concept because the casino is just an aspect of the entire development. Morocco now has 6 casinos, but all are small by any standard. The largest is in the northern city of Tangier, which has 200 slot machines and 31 table games.
Knott said the Moroccan developers, Palmeraie, a group of banks and investment firms, were open to building the hotel-casino themselves or having the casino operator put up all or part of the costs.
Knott said the tax on gaming revenues could be anywhere from 17% to 21%, which is lower than gaming taxes in neighboring countries. Because of the Muslim government, which can't officially endorse gambling, the casino operator would have to set up its own regulatory system. Knott said he discussed the concept with Las Vegas gaming attorney Tony Cabot, who said it could be accomplished. Cabot said the regulatory structure would be important for any Nevada casino company interested in the Morocco opportunity. Cabot said the concept is used by casinos that operate aboard cruise ships.

via ReviewJournal.com