James Packer’s Crown Resorts company has received a 99 year license from the government of New South Wales. This license will allow them to begin construction on a casino, hotel and resort in the Barangaroo South area. Crown Resorts has already paid the government of New South Wales $5 million as a deposit, and will follow that up with a $100 million payment in the coming week. This places a value of around $1 million per year on the license, not including taxes and other revenues the government will earn once the site is operational.
Plans are at an advanced stage for this casino, with the opening expected for November 2019. There was initial skepticism about the license announcement, but further review of the documents showcases a very restricted agreement. Crown Resorts will be unable to set up poker machines at the Crown Sydney Hotel resort or Sydney’s Harbour Bridge. In addition, gambling is only permitted for hotel guests, with no services available for the general public. There are strict bet limits, with the government keen to avoid cases of heavy losses for individual hotel guests.
Smoking will be allowed in the gambling areas of the complex, but only after the installation of a high quality central air conditioning system. Rooms are set to be either non-smoking or smoking, with the hallways, restaurants and other general areas strictly no smoking.
There are many doubters regarding this casino, however Crown Resorts predicts that the government of New South Wales will receive around $1 billion in tax revenue within the first 15 years of operations. This is a huge sum of money, and it firmly signals Australia’s entrance into the much coveted Asian tourist gambling market. The hotel is sure to attract domestic guests, but the vast majority of customers will come from China.
Crown Resorts’ chief executive was delighted that this deal had finally been concluded. He had this to say on the matter: “Crown is committed to building an iconic six star hotel in Sydney. This hotel, casino and resort will attract global attention, providing a much needed boost to the economy.”
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