Poll: Public rejects a second IR
Australian casino operator Star Entertainment Group has put the government of Queensland on notice, saying it may reconsider its plan to invest nearly AU$9 billion (US$6.6 billion) in development projects across the state if lawmakers approve a second Gold Coast casino.
The company operates the Star Gold Coast in Broadbeach, and now is in Phase I of the multi-billion renovation and expansion. According to Casino News Daily, the project, which began in 2016, will add a 53-story hotel and residential tower. Four more towers will be opened progressively at the complex every two years for a total of 3,000 rooms and apartments. The expansion will also add new F&B outlets, entertainment and retail options and new resort facilities.
But there’s a hitch: Star has said that each stage of its expansion masterplan will be dependent on “the market and competitor landscape at the time.” According to recent reports, Hard Rock International is also looking at the Gold Coast as a likely IR site.
Last month, according to the Gold Coast Bulletin, Star Queensland Managing Director Geoff Hogg wrote a letter to state Premier Annastacia Palaszczuk urging her to “assess the costs of discontinuing a true industry partnership between the Palaszczuk government and the Star that will leverage statewide benefits” and asking her and other lawmakers to “fully embrace” that partnership.
A new poll says 68 percent of Gold Coast residents oppose a new casino or more poker machines in the region; the Star has said its expansion at the Star Gold Coast would not add more pokies.
Bolstering Star’s position, Australian financial firm Macquarie Research has issued a report saying the Gold Coast may not be able to support two large-scale casino resorts. Simply stated, the Gold Coast is “not the most attractive market” for a new integrated resort, Macquarie analysts said, in a note reported the Gold Coast Bulletin. U.S. gaming and hospitality company Hard Rock International announced earlier this month that it’s pursuing an AU$2 billion (US$1.45 billion) IR development in the vicinity.
Macquarie analysts advised the Queensland Government to assess “the net community benefits and determine whether a second IR deters the Star Gold Coast from completing its recently approved AU$2 billion masterplan.” The team believes an investment of more than AU$400 million “would struggle to deliver an appropriate return.”
