The hoteliers blame illegal rentals for there being saturation and evidence of so-called "tourismphobia".
The police found 21 people - 16 men and five women - who were involved in gambling amounts up to 10,000 euros.
Security has been and is key to the islands and must be strengthened as much as possible.
A switch in location has to take account of the volume of tourists and concerns that horses might be frightened.
In around four years, the Palacio will have had more than 77,000 visitors and generated over 21,000 million euros.