Sunday 10. April, 2016

Concerns Expressed Over Australia’s Major Casino Expansion

Concerns have been raised over the massive expansion of the Australian casino industry and whether this expansion will be viable. More than A$15 billion has been slated for casino construction and upgrade projects around the country over the next decade, with new luxury integrated resorts and upgrades to existing casinos planned.

However, many people are starting to question the viability of these projects, particularly in light of the changes to Chinese law that are seeking to limit the amount of wealth that leaves the country in an effort by President Xi Jinping to crack down on money laundering and corruption.

“Considering the financing required for these projects…it is clear that a gigantic windfall is anticipated,” wrote David Neustein, architect and writer, in The Monthly magazine.

“It seems inevitable that China’s crackdown on wealth leaving the mainland will expand beyond Macau to ensnare those spending big in Australia.”

However, experts in the tourism industry say that they do not anticipate a slowdown in the Chinese tourism market and more casinos will create more choice which will continue to attract Chinese tourists.

This appears to be what the casino industry is banking on with significant projects planned. James Packer and Crown Resorts are planning a $2 billion six-star hotel and casino resort in Sydney in Barangaroo, after the NSW government granted a license for the building of a second casino in the state.

Crown’s rival casino group, The Star Entertainment is planning a $1 billion upgrade to its Star Casino in Sydney, as well as an $850 million upgrade to its Jupiter’s Casino on the Gold Coast. SkyCity is planning a $300 million upgrade to its Adelaide Casino which will include new gaming areas and a new hotel and Aquis Entertainment has planned a $330 million upgrade to Canberra Casino.


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