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15/11/13

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WWW.CASINOREVIEW-ONLINE.COM • NOVEMBER 2013 • EDITION 133

North America NEW YORK NEW MARKET CASINOS FINALLY PASS THE GRADE IN NY STATE 20-23 Is Japan finally going to legalise casinos?

TURNING JAPANESE

WORLD NEWS 2-4

G2E 2013 REVIEW 28-45

A full report on the key products and players at Las Vegas

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CASINO RESORT

Crown Sydney gets the go-ahead from NSW

A AUSTRALIA

James Packer’s gamble on a second casino for Sydney combined with a six-star hotel has paid off. As Hugh Sorrill reports, he will be building into and for an everexpanding Chinese market.

fter months of fierce and edgy competition and discussion, the New South Wales government has formally approved the development of Sydney’s second casino to be operated by Crown Resorts. Following the three-stage Unsolicited Proposals process, the government has signed a binding agreement with James Packer’s company to allow the casino as part of a six-star hotel and resort complex on the harbourside Barangaroo area. There are strict conditions attached to the agreement: the casino will be open only to VIP residents and members; there will be no slot machines and no low-limit bets. The casino will pay gaming tax of 29 per cent and will guarantee licence fee and gaming tax payments of at least A$1bn (E695m) over the first 15 years of full operation. Now the deal is done, there are a few procedural matters that have to take place. The government will quickly introduce enabling legislation to amend the Casino Control Act 1992, which limited Sydney to one casino. The company must also obtain planning consent for its ambitious plans and, when the time

comes, the necessary licences from the Independent Liquor and Gaming Authority. The statement from the Premier Barry O’Farrell’s office said: “The NSW government has accepted this unsolicited proposal because the independent assessment committee found a competitive casino market would deliver increased tourism and broader economic benefits for NSW.” The project is expected to create around 1,250 jobs after construction and add an annual $442m (E307m) to the Gross State Product by 2025, as well as stimulate international tourism. Speaking to Macquarie Radio in Sydney, Packer said: “It’s a development we’re hugely proud, happy and thrilled the Premier has endorsed - and reading some of the statements from the Labor Party, they have been very positive as well. The fact that we could get bi-partisan support goes to show that the opportunity for Sydney is huge.” The company is also supported by the unions and by indigenous employment programmes with which it will work to develop specific training courses and job

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opportunities. Packer wants the casino to start operating the moment The Star’s licence exclusivity expires on November 15, 2019. International tourism - especially from China - is central to the success of the plans, he said. “People underestimate the change in the world that’s going to happen from the rise of China. In 2000 there were approximately 10m overseas trips made Chinese. Last year it was 70m; it’s forecast to be 100m trips in 2015 and someone told me the other day it could be 200m in 2020. This is going to change the world like the internet changed the world. This doesn’t happen very often.” He added that Sydney doesn’t have the facilities to cater to the increasing demand, and that in these days relying on New South Wales and Australia’s natural attractions isn’t enough. “Australian tourism has underperformed dramatically,” said Packer. “If we sit here and think everything’s going great, we’re kidding ourselves. The natural attractions are magnificent but people also want man-made

attractions… People do not want to spend all of the holidays in the outback looking at Ayers Rock.” He continued: “Australian tourism arrivals are about 6m a year… If we can get 2m more of the 200m Chinese tourists in 2020, it makes a huge difference.” Under the agreement, Crown Resorts is committed to building a six-star iconic hotel with a range of luxury rooms, villas and super villas, an “architecturally dramatic” lobby area, spa facilities, signature restaurants with celebrity chefs, a destination cocktail bar as well as meeting and convention space both indoors and outdoor. “We believe, with our internationally renowned architects Wilkinson Eyre, that we can create a hotel resort that will feature on postcards and in travel magazine globally,” said Packer. “Sydney is one of the world’s great cities. It deserves one of the world’s great hotels. I am going to do everything I can to try and make Crown Sydney the best hotel in the world. Crown will build a landmark for Sydney, an architectural icon to rival some of the world’s best buildings.”

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