Echo Entertainment is looking to strengthen its hold on Sydney’s casino monopoly with plans to invest A$1 billion or more in a new gaming resort on Darling Harbour.
The announcement comes as ASX-listed Echo tries to fend off a bid by rival Crown Limited to win permission to develop a multibillion-dollar luxury resort with a tables-only VIP casino on the harbor in competition with Echo’s Star casino.
The government of New South Wales has said only one project will be approved. Echo’s exclusive license with the state is supposed to run through 2019, and the company has already spent $870 million on a multi-year renovation at the Star aimed at drawing more high-stakes gamblers.
“I have nothing against Crown or nothing against James Packer,” said Echo CEO John Redmond. “This is really an investment in Echo’s future. It should be only one casino and one city.”
With Echo’s monopoly in view, Crown had bought up 10% of Echo’s stock and had applied last year for regulatory permission to increase its stake to 25%. Approval was granted late last month, but then Crown abruptly changed course and sold off its holdings, saying it wanted nothing to distract it from its Darling Harbour bid.
Crown owns resort casinos in its home city of Melbourne and in Perth.
