Fed Group promises millions in new investments
Two more casinos may be in the works for Tasmania, an island state off the southern coast of Australia. According to Casino News Today, the Liberal administration has announced that parliament will begin an “open and transparent process” to weigh the pros and cons of doubling the casino inventory. There are now two casinos in Tasmania, both run by the Federal Group, which has a monopoly on casinos as well as poker and Keno until 2023.
Tasmanian Treasurer Peter Gutwein says the government will consider licensing one casino operation at each end of the state. The southern casino project may be given to businessman and professional gambler David Walsh, known for his Museum of Old and New Art in Hobart. Walsh has said he will not move forward with a multimillion-dollar casino plan if Federal gets an extension of its poker monopoly.
But the Federal Group would like its monopoly to continue. As leverage, it has dangled $100 million worth of future investments before government officials, saying it cannot spend that kind of money if it must face new competition. The move has widely been described as blackmail.
“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,” Gutwein said. “The government’s view is that in the first instance, the opportunity to apply for such a license should be afforded to Mr. Walsh,” who originally planned 12 gaming tables and poker machines at his venue in Hobart.
“In relation to pokies in hotels and clubs, our policy position is that the rights to operate these machines post 2023 will be allocated and priced by a market-based mechanism, such as a tender,” Gutwein continued. “The placement or relocation of pokies into new venues outside of the casino environment should not be solely determined by the industry and the public interest should be taken into account. This will give local communities a voice in determining the future location of (pokies) in their community, which has been lacking.”
