On March 24, 2007, the Unite Kingdom’s plans to raise taxes on the larger casinos in the country will dampen the enthusiasm of the casinos to put down their investments in Britain, according to Harrah’s Entertainment Incorporated.
Harrah’s is one of the companies that are applying to build the super casino. The company has reacted to the plans proposed by the Chancellor of the Exchequer Gordon Brown in his budget proposal, which states a plan to impose a 50% tax on the bigger casino instead of the present rate of 25%.
An official from Harrah’s commented that the larger tax rates will put a damper on the investments and the capital that the investors are planning to put in Britain. A spokesperson from the company also said that the planned taxes were brought about without any discussion and such steps by government officials could scare potential investors away.
The United Kingdom is proposing to build the supercasino in Las Vegas style. Well-known casino operators, like Harrah’s and casino companies in the United Kingdom, are expected in the bidding process for the gambling casino. Being the site of the supercasino, the Manchester City Council will begin a process to pick the contractor for the casino immediately after the supercasino project gets the green light from the British Parliament.
The Parliament is considering some modifications to the proposal. The official council said that it is very early to say anything about the tax proposals because it is not that clear yet how the bigger taxes can affect the investment proposals of the investors for Britain. He commented that all well-known casino operators based in the US are expected to bid on the project despite the threat of larger taxes ahead. Harrah’s is currently in the middle of a buy-out bid coming from private equity firms.
April 02, 2007
