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James Packer's Barangaroo casino gets final approval from NSW government James Packer's Barangaroo casino gets final approval from NSW government
(about 13 hours later)
James Packer's Crown group has entered into a final, binding agreement with the NSW government for its VIP casino and six-star hotel at Barangaroo. Sydney's second casino is one step closer to opening its doors after the NSW government entered into a binding agreement for James Packer's $1.5bn development.
The agreement follows the completion of negotiations under stage three of the unsolicited proposals policy, the premier, Barry O'Farrell, told reporters on Monday. The third stage of the approval process for Packer's Crown Group project was signed off on Monday.
O'Farrell said relevant legislation would be introduced to parliament this week. The restricted gaming development will include a luxury six-star hotel and VIP-only casino at Barangaroo.
Premier Barry O'Farrell said legislation would be introduced into parliament this week to enable the casino's approval.
"What we have agreed is to introduce legislation for a restricted gaming facility to be allowed to operate at Barangaroo south from November 2019," he said."What we have agreed is to introduce legislation for a restricted gaming facility to be allowed to operate at Barangaroo south from November 2019," he said.
The agreement for the $1.5bn facility includes no low-limit bets on table games, no pokies and VIP gaming only. "I am humbled that we have reached formal agreement with the New South Wales government," Packer, Crown Resorts chairman, said in a statement.
The government says licence fees and gaming taxes will reap a guaranteed minimum of $1bn over the first 15 years. "We believe that Crown Sydney will help attract Asian high net worth travellers to Sydney, in particular from China, creating economic growth, extra taxes and over 1,200 jobs for the people of New South Wales."
O'Farrell defended the step towards a second casino in Sydney. A independent assessment committee assessed earlier this year Crown's bid as well as plans Echo Entertainment, owner of Sydney's existing casino The Star, put forward.
"This is about high-worth individuals engaging in gaming," he said. The committee – chaired by former banking chief David Murray – found Crown's contribution to gross state product and tax was 26% and 31% larger than Echo's respectively.
"It's estimated, and on the basis on Crown's Victorian experience, that 5% of local gamers would use this facility, but these are people who would gamble between $300,000 and $400,000 a year – clearly beyond the means of most people." O'Farrell said on Monday minimum bet standards would apply to Crown's casino.
For baccarat, the minimum bet would be $30 but that equated to an hourly betting minimum of more than $2,000, Mr O'Farrell said.
"This is as we said when approving stage two about the Asian-based high-range gaming market," he said.
"It's about high worth individuals. It's about that tourism which Australia catches a very small part of and NSW is determined to be a bigger part."
The government says at least $1bn will be gained in the first 15 years from licence fees and gaming taxes.
O'Farrell said statutory approvals were still needed from liquor and gaming authority and planning consent for construction, which would include public consultation.
But NSW Greens MP John Kaye said the approval process to date had been anything but independent and accountable.
"It is not surprising NSW is a step closer to another casino with all of the corruption risks, all of the gaming risks and all of the economic risks it brings with it," he told AAP.
Sydney Business Chamber executive director Patricia Forsythe welcomed the announcement.
She said if the state was not attracting the high rollers there were plenty of other locations for them to go.
"It's restricting the casino to the so-called high rollers, so it's restricting the gambling to a very narrow group," she told AAP.
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