Australian Casinos Archives - Page 6 of 11

Australian group ploughs resources into Lasseters revival

October 27, 2021 by Admin

Iris Capita, an Australian hospitality and development firm has pledged over $100 million to upgrade Lasseters Hotel Casino after it acquired the property this October.

Lasseters is situated in the remote town of Alice Springs and was previously owned by Singapore’s Lasseters International Holdings prior to the property’s sale to Iris Capital in April. The site exchanged hands for $105 million, a deal which was finalised this October after the new owner secured regulatory approval to operate the casino.

Iris Capital’s CEO, Sam Arnaout, stated that the company is in the process of doubling its investment through upgrading the existing infrastructure and adding a new hotel.

“We are well advanced in discussions with the Northern Territory Government in relation to recapitalising the asset. Our master plan for Lasseters incorporates a new hotel offering within a fully integrated resort and includes a repositioned casino floor with significantly expanded food and beverage offerings,” he said.

“The investment is aimed at capturing pent-up demand for new domestic tourism destinations, as well as the international travel market, while also capitalising on the mining industry’s connection to the region. We are taking a first-mover position with a significant investment that we believe will provide the catalyst for further investment in the region,” he continued.

Arnaout went on to elaborate on details of the project, saying,

“We’re putting the pedal to the metal to make sure the hotel and casino are ready to go in line with the government’s tourism vision for the region. We believe our plans will be a major shot in the arm for local stakeholders and other investors. With international flights already servicing Alice Springs, the infrastructure is there for this region to attract further investment by tourism operators and bring the red centre closer to a travel-hungry world market.”

Iris Capital currently operates close to 30 pubs and hotels across Australia with more than 1000 electronic gaming machines under its supervision.

Australia’s credit card gambling ban gains serious momentum

August 25, 2021 by Admin

An Australian ban on the practice of using credit cards for online gambling has received full backing from the members of Responsible Wagering Australia (RWA). The membership comprises some of the nation’s largest online betting operators like Bet365, Betfair, Entain and Sportsbet.

Brent Jackson, the Chief executive of RWA, used his opening address to an inquiry into the regulation of the use of financial implements like credit cards and digital wallets for online gambling in Australia to announce the new measure. The inquiry’s purpose was to garner evidence relating to whether credit cards and digital wallets should be allowed as transaction methods for online gambling.

“As a policy-based body we want to achieve the best outcome for consumer protection,” Jackson said. “We think that the best way of achieving this is by committing to transparent discussion and actively working with stakeholders to make sure we provide the best outcomes. Australia’s major online wagering operators will support development of measures to prohibit credit card wagering,” Jackson said, emphasising that the RWA would work alongside banks to bring this to fruition.

“Responsible Wagering Australia members have agreed to develop a technical solution to deliver this reform in a timely fashion and will seek the assistance of banks and payment processing providers to ensure the change can be delivered without adverse unintended consequences.”

He elaborated further, saying,

“Responsible Wagering Australia members acknowledge concerns expressed by policymakers and the community sector and will seek to develop measures which harmonise the online environment with gambling at clubs, pubs and casinos where credit card use is prohibited. This measure will build on Australia’s strong consumer protection framework for online gambling. Responsible Wagering Australia members recognise and respect community views on this issue and will work constructively on delivering this reform.”

Jackson explained that regulatory approval is central to ensuring that the ban is put in place.

The inquiry into the use of credit cards came about following a discussion in late 2019 by the Australian Banking Association on the same issue. In 2020, Bank Australia revealed that it would prohibit the use of credit card payments for gambling.

A similar ban exists in Great Britain that includes credit card gambling through e-wallets. The Australian commission has informed gambling operators that they may only accept e-wallet transactions once they have prohibited credit card usage.

More Australian casinos feel the lockdown pinch

July 3, 2021 by Admin

Fresh outbreaks of COVID-19 across Australia have prompted local authorities to institute “circuit breaker lockdowns,” designed to offer contact tracers enough time to locate those exposed to the virus. The lockdowns will of course put a halt to casino gambling across the country.

Current casino closures

Many Australian casinos have been compelled to temporarily close their doors, with different potential reopening dates planned, dependant on the area.

The city of Darwin is locked down until at least July 2^nd; this will affect the Mindil Beach Casino Resort. In Queensland, all casinos have closed to the public with venues like The Star Gold Coast, Treasury Brisbane, and The Ville Resort-Casino currently out of commission.

The most populated city in the nation, Sydney, is currently under lockdown for two weeks, doubling the previously tabled estimate of 7 days. In the west of Australia, Perth has announced a brief four-day lockdown, compelling Crown Perth to shut down its gambling operations for the period with business expected to resume on midnight of July 2^nd.

Bondi blues

This recent surge of lockdowns and closures is mostly owed to a pocket of infections called the “Bondi Cluster.”

Bondi is a famous beach suburb in Sydney with a population of over 10,000 and the “cluster” half of the term refers to two or more cases in individuals that don’t live together, but who have been infected by a virus with an identical genetic sequence who have made contact with each other.

The first Bondi Cluster case reportedly came from a driver who had transported an international flight crew. It spread rapidly and has been recently linked to over 160 cases. Infections have crossed the state borders into Western Australia, Victoria, Queensland, and the Northern Territory.

The dual-pronged approach of lockdowns and widespread testing means that most clusters are dealt with within a three-week period. By this measure, the Bondi Cluster should be fully contained by the second week of July.

The Delta threat

A new threat that has emerged from the pandemic is the feared Delta variant that is driving the spread of the Bondi virus. Unsettling details have shown that Delta is incredibly more contagious than the original strain of COVID-19.

Professor Catherine Bennett, the chair of epidemiology at Deakin University said,

“This isn’t a sleeper variant. When you look at the pattern of spread, it seems that most people are passing it on to more than one person. Not only are more close contacts more likely to be infected, but they’re also more likely to see cases amongst those casual contacts. And what we do know about Delta is that it seems to give you a high viral load a little bit quicker.”

Grim fortunes for casual workers

With all three properties of The Star Entertainment Group closed, the company has mercifully announced that it will keep paying its employees during the lockdown.

Unfortunately for the many casual workers in Sydney, there is no safety net for when they cannot work. There are approximately 466,500 casual workers in the city, who bring in an average weekly salary of $609. The lockdown is expected to cause a loss of over $100 million in wages.

Australian self-exclusion register nears completion

June 26, 2021 by Admin

Over the last few years, the Australian government has been working to create the country’s first self-exclusion registry for online and mobile gambling. This initiative has gathered steam over time and a recent acceleration in the plans make it seem likely that the responsible gambling service will be launched in 2022.

The Australian Communications and Media Authority (ACMA) recently announced that Engine Australia has been contracted to develop and manage the self-exclusion registry.

The details

The Australian service will bear many similarities to GamStop, the UK’s version which was introduced in 2018. This comes as no surprise because Engine Australia was also its creator.

A single process will allow potential punters to self-exclude from all licensed online gambling providers. They can determine the length of their exclusion, with options ranging from three months to a lifetime.

Individuals on the list will be excluded from direct provider advertising for as long as they are on the list. This is geared at bolstering the self-exclusion and reducing the potential that problem gamblers may relapse.

Progress

Nerida O’Loughlin spoke on behalf of the ACMA, stating that the involvement of Engine indicates “a major step forward.”

“If you choose to self-exclude, this register will ensure your account is closed, your money returned, and no further advertising or promotion activity will be directed your way. Through our consultation, we will engage with the interactive wagering industry on the design of the system and the rules around the operation of the register. We will also work with consumers and advocacy groups to ensure that the register meets the needs of users, including putting in place robust privacy safeguard,” she said.

A cloaked player

Engine Australia, despite assuming such public roles, is shrouded in mystery, revealing little about the exact nature of its business.

What scant information there is out there does little to dispel its enigmatic image. The business has been running since 2005 and, according to its website, “Engine is a media and marketing services company that exists to futureproof clients’ business.”

The firm is headquartered in New York and operates out of 17 offices across the UK, Europe, Asia-Pacific, and North America. With a staff complement of over 1,200 specialists, Engine has provided its services to major organisations including Coca-Cola, Domino’s, AstraZeneca, and the National Trust.

The company boasts a crowded trophy case, filled with illustrious awards, including ones from Creative Review, the UK Content Awards, Cannes Lions, and the Campaign Big Awards.

The website states, “Engine is an ecosystem of creative wunderkinds, uber-nerds, business consultants, cultural mavens, and channel specialists working together to help our clients grow.”

Despite its inscrutable existence, the company’s GamStop creation has received almost unanimous praise.

Long time coming

With the history of the country’s problem gambling considered, a self-exclusion register appears to be a long-overdue measure. Australians display worryingly high levels of gambling engagement with 80% of residents confessing to taking part in some form of gambling in a recent poll. This places the nation at number one globally.

The average annual gambling spend for an Aussie punter comes in at a hefty $1300. This median conceals the much higher averages that are found among the 300,000 problem gamblers in the country.

On Engine UK’s website, the company openly displays its achievements, saying, “We helped 100,000 addicts break their gambling addiction.”

Now that this initiative has been set fully in motion, Australians will soon find themselves in a better position to rescue themselves from devastating compulsion and addiction.

The Star tables $12b Crown Resorts casino merger offer

May 11, 2021 by Admin

The Star Entertainment Group has thrown its hat in the ring for a shot at acquiring James Packer’s Crown Resorts with a $12 billion merger offer that would create a gambling and hospitality monolith comprising seven properties across four states.

The proposed merger will be publicly announced in an ASX statement. This development means that The Star will be competing directly with US investment titan Blackstone in the fight for the embattled casino group. Crown’s licence for its new Sydney casino was suspended by regulators in February 2021, and royal commissions into the company are set to start soon in Victoria and in Western Australia.

Blackstone’s offer of $8 billion for Crown was proposed in March, and a third contender, US investment fund Oaktree Capital, put forward an offer of $3 billion for Mr Packer’s 37 per cent stake in the company.

According to an anonymous source, The Star has advised Crown of the imminent announcement of its non-binding, indicative proposal and the company believes that its long history of running casinos in Sydney, Brisbane and the Gold Coast, puts it in the ideal position to address Crown’s regulatory issues more efficiently so than the others lined up to take over the beleaguered organisation. In February 2021, Crown was deemed unfit to run its new casino at Sydney’s Barangaroo, following proven allegations that money-laundering activities were taking place at its casinos. These revelations came to light alongside other probity miscarriages that the Bergin inquiry revealed.

Investors from both companies would receive shares in a new entity with an estimated value of around $12 billion and the deal would allow the company to stay listed on the ASX.

The Star is of the opinion that having the two groups merge would generate $150 million to $200 million in cost savings per year, which would add up to approximately $2 billion in equity value for the combined group’s shareholders.

The deal would also create an implied per-share value of $14 for Crown shareholders, at last glance; the group’s share price was hovering at about $12.12.

Blackstone already holds a 10 per cent share of Crown and put forth its initial offer of $11.85 per share, but later increased its bid according to an inside source.

It has been speculated that Crown investors would have the choice between cash or new shares in exchange for their original Crown shares. The cash portion is reportedly restricted, so Crown shares investors could receive an amount contingent upon how many shareholders go for that option.

Sources also revealed that The Star’s preference is a merged company as an arrangement of that sort could potentially mean significant benefits from co-ordinating marketing, loyalty programs and digital systems, positioning The Star to better exploit new growth markets across the globe as travel and tourism industries begin to mend from the COVID-19 pandemic.

The combined company would keep the Crown brand for its Melbourne, Perth, and Sydney properties, while existing The Star casinos and hotels would retain their brand.

With about 11,500 workers at the Southbank complex, Crown is Victoria’s largest single-site employer and generates about 1 per cent of the state’s tax income.

In all likelihood, a merger would require the nod from the Australian Competition and Consumer Commission, and The Star would need to secure a licence from by gambling regulators in Victoria and Western Australia.

The gaming rooms for Crown’s planned $2.2 billion Crown Sydney had a planned opening of December 2020. However, the NSW gambling watchdog scuppered these plans, following the damning allegations that triggered the Bergin inquiry

The inquiry was initiated after a flurry of media reports uncovered money-laundering in company bank accounts linked to Crown Melbourne and Crown Perth. The Casinos was found to have aligned themselves with “junket” high-roller tour operators with links to organised crime; and overlooked the well-being of staff members who were arrested in China for gambling crimes in 2016.

Crown has reported that it is embarking on an exhaustive governance reform process, with the company’s management and board left feeling eviscerated by the outcome of the Bergin inquiry. The company’s previous chief executive Ken Barton and five directors have already vacated their positions and Crown has yet to appoint a new CEO while executive chairman Helen Coonan temporarily occupies the position with only four directors.

A merger could end up hastening the progress of re-placements at Crown’s management and governance level. Existing executive teams may combine with each other, with Star CEO Matt Bekier at the helm, leading a board selected from existing Crown and Star directors.

A lot of the power to approve of any merger rests with Mr Packer who owns 37 per cent of Crown. Packer has been searching for a buyer of his stake in Crown for a few years now. The NSW casino licence that The Star holds incudes a caveat that specifies that no single shareholders can own more than 10 per cent of its shares.

James Packer’s Sydney casino plans could be saved by Crown split

March 31, 2021 by Admin

Billionaire James Packer suddenly has a whole new set of possibilities to consider following a bid for his beleaguered Crown Resorts by the biggest private equity firm in the world, Blackstone.

Blackstone’s cash bid comes in at $11.85 a share and values the company at $8 billion. This has been widely regarded as an opportunistic move as it trades on the achievable value assuming Crown is broken up.

Blackstone’s potential plan to split and auction off Crown’s assets, which include its casinos in Melbourne, Sydney and Perth, exposes that beyond the $5 billion value that the hotel and resort assets represent, the operation’s gaming licences also represent significant value. A casino’s gaming licences and property assets are traditionally linked but selling them separately is permitted.

Crown’s balance sheet values the licences at $1 billion, however, this value was established pre-pandemic and before the condemning findings of the NSW Bergin inquiry. The inquiry’s report states that Crown’s Melbourne and Perth casinos had been permeated by organised crime groups who launder money; this information was confirmed by an investigative report from The Age and The Sydney Morning Herald journalist Nick McKenzie.

The Bergin inquiry deemed Crown unfit to operate its Sydney licence, and the company was forced to halt the planned reopening of its casino floors. There are currently Royal Commissions reviewing Crown’s licences in Victoria and Western Australia.

Considering these developments, it is understandable that the value of Crown’s licences may be called into question and puts Blackstone’s seemingly miserly bid in firm perspective.

Crown’s licences aren’t worth what they used to be due to a recommendation in the Bergin Report to ban junket operators, some of which have been linked to organised crime. Crown Sydney’s particular business model relied heavily on revenues from international tourism, and specifically junket operators who bring in high-roller clients.

Under Crown’s Sydney licence, the venue may not operate any poker machines, in contrast to its competitor, Star Entertainment, which holds the other Sydney casino licence. Speculation that the smaller Star could put in a bid for Crown is rife.

While this is a possibility, it is widely regarded as an unlikely outcome as it would make more sense for Star to pursue Crown’s Sydney assets.

Star stands to gain the most out of a potential Crown Sydney break-up as it is a known quantity to NSW’s gaming regulator and more critically, holds a licence to operate poker machines in the city. This means that poker machines could make their way to Crown Sydney, off-setting lost revenue from the junket operator ban.

Crown Resorts CEO steps down amid inquiry report fallout

February 19, 2021 by Admin

The CEO of the Australian casino operator, Crown Resorts, Ken Barton, resigned on 15 February in the wake of the findings of an inquiry that judged the operator to be unfit to hold a gambling licence for its new Sydney casino.

The inquiry uncovered evidence of pervasive money laundering and governance transgressions. It precipitated Barton’s resignation, which was expected as his presence was a sore point for the state regulator that suspended the company’s gambling license. Crown was on the verge of opening its massive casino resort in Sydney, and this latest development brings all of its plans into question.

Barton’s departure was not the only one as three directors of the company have also vacated their posts following the inquiry’s report.

The vacant CEO’s position has created a vacuum that will need to be filled soon by the company that is 36% owned by billionaire James Packer. The company’s chairperson, Helen Coonan, a former federal communications minister, will expand her role to absorb executive responsibilities until a new CEO is appointed.

In a statement, Coonan said, “Assuming the role of executive chairman is a decision I have not taken lightly, but the Board feels it provides leadership stability and certainty at this important time for the business. The Board is determined to maintain the momentum as Crown takes significant steps to improve our governance, compliance, and culture.”

The recently released report caps a year-long inquiry that was initiated by the New South Wales state gambling watchdog. Its contents revealed allegations of widespread money laundering and failures in governance at Crown. The report ultimately recommended comprehensive changes to the company’s Board and culture.

The report states that Crown is, therefore, not eligible for a gambling license. Barton was described as “no match for what is needed at the helm of a casino licensee”. Before the resignation of the CEO and the directors mentioned in the report, the Victoria state had formally requested that Barton justify continuing in the role.

Like Coonan, Barton had only assumed his role a year ago; however, he had served as Crown’s chief financial officer for a decade prior.

Crown shares saw a rise of 0.9% on the day of the announcement in line with the broader market. However, the stock is still down one-sixth since a year ago following lockdowns and border closures geared ad combating the spread of the coronavirus which spooked investors interested in the company’s earnings potential.

The company’s half-year results are expected to be made public on Thursday.

SkyCity Adelaide confirms massive $243 million expansion

December 2, 2020 by Admin

Australian casino operator, SkyCity Entertainment Group Limited recently announced its plans to open a $243 million expansion to its SkyCity Adelaide property on 03 December 2020.

Inside Asian Gaming reported that the official opening event would launch its 120-room Eos by SkyCity luxury hotel and four restaurants alongside a selection of conference and meeting amenities. The Adelaide property will feature two new bars and VIP gaming rooms to occupy its 129,000 sq. ft casino space

Long time coming

SkyCity Entertainment Group Limited also operates the SkyCity Auckland, SkyCity Hamilton, and SkyCity Queenstown properties in New Zealand. The company purchased the Adelaide Casino in 2000 and rebranded the venue as SkyCity Adelaide a year later. The five-star venue re-opened recently after a brief coronavirus-related closure. The current expansion is the property’s first significant upgrade since 1985.

Community focus

David Christian, the general manager at SkyCity Adelaide, expanded on how the project has created around 1000 temporary construction jobs with the venue taking on an additional 500 staff and supporting over 700 local suppliers.

When pressed further, Christian elaborated, saying, “I feel a sense of pride in what SkyCity Entertainment Group Limited has achieved since taking ownership 20 years ago. When we designed the new SkyCity Adelaide, which includes the stunning new expansion as well as a complete refurbishment of the heritage building, front of mind was to not only cater for the tourism market by showcasing South Australian producers and suppliers but also to provide a world-class precinct where all South Australians feel excited to visit and proud to call their own.”

SkyCity Auckland First Major Casino Resort to Strip COVID-19 Safety Measures

October 14, 2020 by Admin

SkyCity Auckland in New Zealand is set to become the first major integrated resort (IR) casino in the world to do away with strict regulations that were implemented to slow the spread of COVID-19.

Beginning on Thursday, October 8, SkyCity Auckland will return to normal operations. The casino changes are a result of the New Zealand government moving the city to an Alert Level 1 in its COVID-19 Alert System.

New Zealand is currently averaging only several new positive cases each day over the past month. Therefore, the government believes Auckland, its largest city, is ready to follow the rest of the country and move to Level 1.

Under Level 2, SkyCity Auckland was only accessible to the casino’s Premier Rewards members. Come Thursday, the casino will open to the general public. Alert Level 2 means the coronavirus disease is contained, but there remains a risk of community transmission.

SkyCity Hamilton and Queenstown reopened to the general public on September 22. However, those casinos are much smaller operations. SkyCity Auckland is thought to be the first major gaming property to fully lift coronavirus restrictions.

Back to Business

Soon SkyCity Auckland will be free of restrictions on gatherings, and social distancing will not be enforced.

But before you book a ticket to New Zealand to gamble and entertain yourself freely, the government says entry restrictions remain on anyone coming into the island country.

Controls at the borders remain for those entering New Zealand. This includes health screening and testing for all arrivals, and mandatory 14-day managed isolation or quarantine,” the government explains.

SkyCity Auckland has 2,100 slot machines and over 100 table games on the main floor. The casino additionally has a private VIP space for high rolling guests, and a 20-table baccarat room.

The IR complex has nearly 1,000 hotel rooms and suites, over 20 restaurants and bars, and approximately 200,000 square feet of convention space. Perhaps the casino’s most distinctive attraction is Sky Tower, which stands 1,076 feet tall and is a staple of the Auckland skyline.

New Zealand Safety Standards

SkyCity says it will continue to conduct entrance temperature checks on guests but at random. Patrons who refuse to be screened will be denied entry. The resort will also keep pace with increased cleaning frequencies of high-touch areas.

New Zealand forced SkyCity Auckland to close on August 12. The government allowed the resort to reopen on August 31 in reduced capacity and social distancing measures in place.

Being an island country in the Pacific Ocean, New Zealand has been able to limit the spread of coronavirus through border restrictions. To date, the country has reported just 1,858 COVID-19 cases and 25 deaths.

The Star unveils new expansion plan for Sydney Casino

September 22, 2020 by Admin

After a year since the New South Wales planning authorities disallowed The Star Entertainment Group’s proposed construction of a 237-meter tower adjoining its existing casino complex in Sydney, the company has now put forward a new proposed expansion project for the property.

The Star now intends to build two new towers at its The Star Sydney Casino, however, the proposed height of one of them is over twice what is permitted by draft planning rules for the suburb of Pyrmont where The Star’s complex is located.

The casino operator tabled its amended expansion plan two months after the NSW government published a draft strategy to restructure Pyrmont.

Ritz-Carlton hotel tower at Sydney casino rejected by NSW planning authorities

The Star intends to erect a 110-meter tower at the northern tip of its The Star Sydney site and a 180-meter tower at the southern end of the complex on Union Street.

The proposed 110-meter northern tower would be almost twice the government’s proposed height limit of 60 meters for that area. The tower would feature a 250-room hotel and a signature restaurant.

In its submission, The Star said that the proposed tower and its height “would be required to ensure a hotel of six-star standard.” The company also wanted it noted that the new proposed construction is under half of the height of its original, rejected proposal.

The original plan was rejected in 2018. It proposed the construction of a 237-meter, 66-story tower intended to house 220 Ritz-Carlton hotel rooms and 200 luxury residences, a rooftop pool area with Sydney Harbour views, and a selection of food and beverage facilities.

New proposal jitters

The new proposal has drawn its fair share of opposition. The NSW Labour party spokesman, Adam Searle contended that the plan for the northern tower was “significantly out of keeping” with the government’s planning strategy for Pyrmont.

He went on to add that the government and planning authorities should employ a “sensitive and balanced approach to planning” and that they “would be concerned” if The Star’s proposal “went beyond what the government is currently envisaging for Pyrmont.”

NSW Planning Minister Rob Stokes advised that the casino operator’s proposal was one of 130 plans submitted on the draft for reshaping Pyrmont and that these submissions do not constitute “a development application before the government.”

Minister Stokes further explained that the plan for the redevelopment of the Pyrmont suburb in the next few weeks would be based on all the received submissions.

The Star’s proposal would see its southern tower housing shops, a restaurant, bars, a hotel, and apartments. The company advised that its plan would create 1,000 jobs during the construction phase and an equal number once the two towers are completed and operational.