Current monopoly in place until 2023
The Federal Group, which has said it plans spend $100 million to renovate its two casinos and hotel in Tasmania, now says it may not make that investment without an extension of its gaming monopoly in the Australian state.
According to the Tasmanian Mercury, Denison lawmaker Andrew Wilkie says that’s a form of extortion. “Threatening to abandon $100 million worth of development in Tasmania is blackmail, and just the sort of corporate behavior we have come to expect from the poker machine industry,” Wilkie said. “The pokies industry buys political favors and preys on the most vulnerable.”
He said Federal won its monopoly “through a secret process and at no cost. When the license comes up for renewal, it must not be reissued without a transparent tender process open to all businesses.”
The company had floated plans to upgrade its Wrest Point and Country Club casinos and a new boutique hotel at Port Arthur.
Greens leader Cassy O’Connor said the Tasmanian government should do more to open the industry to competition. A casino proposed by David Walsh, owner of the Museum of Old and New Art, would be closed to locals and would not have poker machines. But Walsh cannot advance with his plans while Federal holds its monopoly.
