A hot topic within the Australia’s casino industry is the ongoing saga concerning Crown’s proposed casino development at Barangaroo. The latest on the saga has seen Packer’s Crown Group seek regulatory approval to increase it’s shareholding in rival casino operator, Echo Entertainment.
Echo Entertainment, who own and run Sydney’s Star Casino, has a monopoly on the Sydney casino market until 2019. Their main rival in the Australian casino market is Crown, who is keen to break into the Sydney market. Crown currently have a proposed development in Sydney’s Barangaroo district going through the various stages of planning approval.
The whole issue of planning, regulation and licenses appears to be a complex issue. The latest twist in the sage is twofold.
Firstly, Crown who currently have a 10% stake in Echo Entertainment have sought regulatory 
approval to increase this to 25%. It’s clear that such a move would give Crown an even greater say in the running of one of its main rivals, as well as them some visibility in 2019 when Echo’s monopoly license expires.
Secondly, and rather interestingly, the NSW Premier went on record last week stating that plans suggest that Crown’s Barangaroo complex will cater solely to high rollers and will be a VIP venue by invitation only. As such it would not be operating as a normal casino, and it would have no pokies, and would not require a traditional casino license.
Whilst the lobbying, negotiations, planning and regulatory due process are likely to continue for some while to come, news is that Crown have signed an agreement with Build Land Lease Limited to build the Barangaroo complex.
The high roller and VIP market has certainly been a key factor to Crowns success in recent years. According to their financial results, $797m was generated by high rollers in 2011/12, up from $583m in the prior year. Sydney would certainly appeal to the foreign high roller market that Crown is catering for.
In fact, figures recently released show Crown’s fleet of private jets have been clocking up some air miles over the last 3 years. Crown operate 3 luxury Gulfstream IV jets, have been flying on average 23 flights a month, and it’s apparent from flight data, that these planes have been busy flying to and from Asia, no doubt ferrying high rollers to and from Australian casinos.
As it stands, Sydney won’t have 2 casinos come 2019, but rather 1 casino and 1 by invitation VIP venue. Something makes us think we haven’t heard the end of this story.
Author: Dan Spence
Tags: Crown, crown casino, Echo Entertainment Group
This entry was written by
Dan Spence
on Monday, March 11th, 2013 at 9:40 pm and is filed under News.
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