The Federal Group unveiled its plans for a proposed million renovation of the Wrest Point complex in Tasmania, which would have new dining and drinking areas, plus a VIP gaming room.
Federal Group CEO Greg Farrell says the plan would result in a new age of tourism in Tasmania and Wrest Point, while adding 100 new jobs. The company also wants to build a $20 million luxury hotel in Port Arthur and spend another $10 million to renovate its Tasmania country club.
Total spending on the casino project and other upgrades would top $100 million, but Federal Group needs regulatory approval to move forward. Its current gaming license expires in 2018, and renewal isn’t automatic.
Instead of moving ahead with $100 million in improvements, the Federal Group says it needs to know it will have a license beyond 2018 and a deed extension for its property, which critics interpreted as blackmailing the local government to gain approval of its gaming license beyond 2018 and an indefinitely extended property leaser.
“If the licenses are not renewed, then it would be entirely inappropriate to spend $70-plus million building spaces and developments for casinos that may not exist into the future,” Farrell said.
Federal Group derives 40 percent of its annual revenues from gaming – mostly from poker slots. It wants to diversify by adding new restaurants and bars, as well as new gaming tables to generate more gaming revenues.
While the Federal Group awaits regulatory decisions, the Museum of Old and New Art in Glenorchy has proven popular among visitors.
Owner David Walsh opened the art gallery in 2011 without knowing its potential appeal, but says 1.65 million people have come since, making it a rousing success.
The gallery contains $150 million in artwork and employs more than 400 full-time workers.
