When the local government announced that it would not renew Echo Entertainment’s exclusivity agreement to make room for Crown Casino’s new Bangaroo Casino, Echo Entertainment did not bat an eyelash. The company stated that it was not at all concerned about the possibility of building another new casino in the area that would compete with The Star.
Now, the casino operator has revealed its plans for the future – which may convince the government to rethink ending its exclusivity agreement. Echo Entertainment has announced its plans to build a resort complex that would accompany The Star Casino. The new complex would feature hotels, retail space, a conference centre and other entertainment venues for visitors.
It would be one of the only casino resorts in Australia, and it would draw in visitors from around the world and across the country. Should the local government end Echo Entertainment’s exclusivity agreement and make way for a Crown Casino venue, Echo’s plans will never come to fruition. So, local politicians must make a choice: a second, competitor casino or a full casino resort?
“That sort of investment where most of the money goes into non-gaming is only viable if we have one casino,” says Matt Bekier, finance director of Echo Entertainment. “If you have to cut earnings too many different ways, you can't invest into the iconic development and non-gaming infrastructure.''
While casino gaming continues a great deal of tax revenue to the local government, non-gaming opportunities have the ability to benefit the state on a more diverse scale. Visitors would not only be interested in gambling; they would bring tourism dollars for a wider range of expenditure, including cultural experiences, shopping and family activities.
Echo’s exclusivity agreement is not up until 2019, but there is the need to plan ahead. Whether Echo expands its casino complex or Crown Casino builds a new casino in the area, a decision will need to be made soon.