Unusual move for “cash-strapped” government
Echo Entertainment, which has moved its Australian headquarters to the site of a planned integrated resort in Brisbane, is considering a government offer to increase the number of slot machines planned for the property.
According to a news release, the government of Premier Anna Palaszczuk has increased the number of slot machines to as many as 2,500. Echo, which planned to carry over 1,632 slot licenses to the new facility, now must consider if it wants to add inventory.
“Throughout our bid we made it quite clear that we didn’t require any additional gaming machines in the proposal,” said Geoff Hogg, managing director of Echo Entertainment Queensland. “Late in the process it became quite clear that … the license included 2,500 machines.” Hogg said it’s unlikely the facility would open with that many machines, but the casino could opt to gradually expand over the coming years. The Australian Financial Review reported that each new gaming machine would contribute an additional $100,000 to the government, which one news report described as “cash-strapped.”
The government of Queensland recently chose Echo over Crown Resorts for the single integrated resort license, which allows Echo to retain its monopoly in the state. However, with the expansion in Brisbane and ongoing renovations at Star Casino in Sydney, Echo says it expects revenue growth to slow over the next 12 months, reported Bloomberg News.
“We have a lot of activity happening in our properties now, particularly in the first half, and we are seeing a little bit of disruption,” CEO Matt Bekier said in an investor call. “Nothing to be concerned about—just a bit of jackhammering.”
The Queen’s Wharf development is expected to begin construction in 2017.
