Echo Entertainment, which is licensed to run Sydney’s only casino until 2019, plans to spend more than A$1.1bn (US$1bn) expanding the property to fend off a challenge from billionaire James Packer’s Crown Ltd.
The proposed extensions to Echo’s Star casino include two new hotels and more than 50 bars and restaurants, the Brisbane-based company said in a statement. Echo also proposes making a A$250m payment to the New South Wales government to extend its exclusive casino licence.
This comes after Packer last month unveiled rival plans for a A$1bn hotel-casino project at Barangaroo, a development site south west of the Sydney Harbour Bridge.
Crown and Genting have made rival investments in Echo since February 2012, amid competition for high-rolling Asian gamblers who’ve doubled Macau’s gaming revenues over the past three years.
Echo also submitted an alternative proposal to the NSW government supporting the Barangaroo development, provided that gaming facilities are VIP-only table games. Under this scenario, Echo will not make the A$250m payment because of the fragmentation to the gaming market.
“While Echo is confident that our proposed development plus licence exclusivity payment provides the most impactful solution, this alternative may be seen as a potential win-win scenario for the people of Sydney,” John O’Neill, the chairman of Echo, said.in the statement.
