The company said it has completed its initial feasibility study and will now move to determining the size, scope, specific location and financing options.

"The regional government of Madrid has been a strong advocate for this potential development and we are appreciative of the energy they have brought to this process," said Sheldon Adelson, chairman and chief executive officer of Las Vegas Sands Corp.

"Barcelona is an outstanding tourism destination and choosing Madrid over Barcelona was not an easy selection."

However, Sands cautioned that progress towards resolution of the current economic challenges within Europe will be an important consideration in the implementation of the project.

Adelson said that while the process in Spain played out, the company will still continue to focus aggressively on a variety of other development opportunities, specifically in the Asian countries of Japan, Korea and Vietnam.

The company owns The Venetian and Palazzo luxury gambling resorts on the Las Vegas as well as numerous casinos in Macau and Singapore.