Cairns casino sale: competition watchdog flags monopoly fears
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Version 0 of 1. The competition watchdog has raised concerns about the purchase of a Cairns resort by the backers of a controversial hotel and casino complex in the region. The Australian Competition and Consumer Commission has released a statement highlighting potential competition concerns in regards to Aquis Reef Holdings’ purchase of the Reef Hotel Casino in Cairns. Should Aquis buy the business, as well as completing the building of its vast 340-hectare resort in nearby Yorkeys Knob, the only two casinos in the Cairns region would be owned by the same company. “The proposed acquisition has the potential to reduce the number of casino owners in Cairns from two to one, removing potential competition between the Reef casino and the Aquis resort,” the watchdog’s chairman, Rod Sims, said. “The ACCC is concerned that the proposed acquisition has the potential to deprive customers of the benefits of competition between these casinos; such as promotions, rebates, or reductions in the price or improvements in the quality of other goods or services provided in conjunction with casino table games.” The ACCC is inviting comment on the purchase by 17 July, with a decision due by 21 August. Aquis, which is operated by the Hong Kong investor Tony Fung, has argued that it does not need federal environmental assessment for its planned Yorkeys Knob development, even though it contains two casinos and eight accommodation towers. The $8bn resort would also feature a 33-hectare lake, filled with water taken via a 2.2km pipeline from the ocean, and a golf course designed by Greg Norman. Environmentalists have warned that the resort would disturb the delicate ecosystem of the Barron river floodplains, on which it would be built. There are also concerns of pollution leaking into the Great Barrier Reef. An environmental impact statement is being assessed by Queensland’s coordinator general, with Aquis hopeful it can start construction in April. The company has claimed the resort will create more than 20,000 jobs. A company spokesman told Guardian Australia Aquis hoped to “expand and enhance” the Reef Casino in Cairns, should the ACCC allow the purchase. The Reef Casino already has 128 hotel rooms, 38 gaming tables and more than 500 gaming machines, such as poker machines. “We remain confident that the ACCC will approve the transaction,” the spokesman said. |