The takeover of the Reef Hotel Casino by Aquis has been largely viewed as a positive thing for the Cairns economy, but some concerns about the project are arising. Recently, the Australian Competition and Consumer Commission (ACCC) has expressed fear that the takeover will reduce competition in Cairns’ gaming and hospitality industries.
In addition to building the multibillion-dollar Aquis Casino Resort, Aquis has also made plans to acquire the only other casino in the city: the Reef Hotel. The company has launched a $269 million bid, and has gained the support of the Reef Casino Trust Board – but the ACCC is dubious. "The issue is whether a Casino is a unique experience or a different experience to going to a club, for example,” says Commissioner Jill Walker.
“So, to what extent there is competition between two casinos that would be lost in the future if both are owned by the same party?" Should analysis prove that the takeover will indeed reduce competition, the ACCC will continue to oppose the bid. If this is the case, then Aquis can go over its head and seek approval from the Australian Competition Tribunal.
It is a different regulatory body, which uses a separate set of criteria to determine if a project prevents competition. Aquis is very committed to acquiring the Reef Hotel Casino. Representatives have stated that if the acquisition does not go ahead, then the group will not build its $8 billion casino resort in Cairns.
With a golf course, exhibition centre, several hotels and entertainment venues, the casino will certainly boost the economy – but it may not be in the cards if the takeover does not happen. The ACCC will make its decision by August 21.
Stay tuned for further updates on the issue.
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