Crown Resorts wanted to open its new Sydney-based high roller casino by 2019, when Star Entertainment’s exclusivity agreement in the city ends. However, the casino operator will now have to delay the launch of Crown Barangaroo for 18 months. According to the Sydney Morning Herald, the new Crown Barangaroo high roller casino will not open its doors until 2021.
While the project experienced some delays during the planning process, it was on schedule to open in 2019 – but, further complications have risen. "We can't lodge our approval until Lend Lease lodge their approval for Barangaroo South and all of that is complicated for a stand-alone project,” says Rowen Craigie, Chief Executive at Crown Resorts.
“Progress is being made, but it is self-evident compared to the original planning for opening it is going to be running late." This is yet more bad news for Crown Resorts. This week, the casino operator also reported falling profits in Macau. While the city was originally planned to be a world gambling capital that would have boosted international operators’ profits, casinos in Macau have seen their revenue falling due to gambling law crackdowns.
Still, executive at Crown Resorts are positive. Craigie believes that it is possible to shorten the construction schedule by raising the project’s budget: "It is still four to five years away so we will be trying to catch up as much as possible. Construction costs can rise, but your revenue projections rise as well."
However, it remains to be seen whether or not such a plan is feasible for Crown Resorts, especially as the operator’s profits continue to decline overseas. So, The Star will continue to maintain its exclusivity in Sydney for an extra two years. While Echo Entertainment has yet to comment, this is seen as a small victory in the competition for high roller business in Sydney.
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