Tasmania Considering Two New Casinos

The island state of Tasmania may grant two new casino licenses. One would go to the Monaco casino proposed by David Walsh (l.), operator of Mona, the Museum of Old and New Art. The announcement concerns the Federal Group, which has exclusively operated Tasmanian gambling for 30 years and owns its two existing casinos.

Government officials in Tasmania, the island state off southern Australia, recently said two more casinos possibly could open, adding to the two already in existence. Treasurer Peter Gutwein said, “The government’s position is that limited new high roller, non-residential casino licenses should be available in Tasmania in addition to the Federal Group’s two casinos.”

Federal Group, which owns and operates tourism, entertainment and gaming businesses in Tasmania, opened Australia‘s first legal casino, Wrest Point Hotel Casino, in Hobart in 1973. The company has held exclusive rights to operate casinos, keno and gambling machines throughout the island state for 30 years, but the current arrangement will expire in 2023. But Federal Group officials said they will request an early extension and will invest $100 million in building renovations.

The new state gaming license will be available in 2019. Observers said one of the licenses will be given to David Walsh, operator of the Museum of Old and New Art, known as Mona. Gutwein said, “The opportunity to apply for such a license should be afforded to Mr. Walsh, given he initially came forward with a proposal in respect of financially supporting the Mona museum.”

Walsh’s proposal includes up to 12 gambling tables at his casino, to be called the Monaco, located Hobart’s upscale northern suburbs. He said, “I want to build a casino with the following limitations: no Tasmanian gamblers; 12 tables and no poker machines; high minimums and maximums; and did I say no pokies? All revenue would go to Mona and related projects.”

Currently 3,530 gambling machines, or pokies, are in operation throughout Tasmania. Gutwein noted, “The rights to operate these machines past 2023 will be allocated and priced by a market-based mechanism, such as a tender.” He added local residents’ opinions regarding gambling should be taken into consideration as gaming machines are relocated.

Opposing additional casinos, federal Independent MP Andrew Wilkie said, “The government announcement also contained no assurance about the mandatory inclusion of effective harm minimization measures in any future licenses to operate poker machines.”