Inside Asian Gaming

July 2013 | INSIDE ASIAN GAMING 11 In its report the Murray panel said, “It is likely that Echo would be motivated to undertake at least some of its published strategic investment plans in response to the introduction of competition.” Echo Chairman John O’Neill said only that the company is “exploring other initiatives”. Crown’s “will draw in thousands of new international visitors.” Mr Pascoe is among the many who agree with this, at least in principle. But a proper discussion of it has been short-circuited, in his view. “What Crown skillfully scuttled was the opportunity for a genuine review of what New South Wales’ optimum gambling industry might be. The state is awash with opportunities for mugs to lose money—close to world’s worst practice when it comes to pokies—without a serious appraisal of how it all fits together.” ‘This Isn’t the End’ Or has that conversation merely been delayed? In its report, the Murray committee said, “It is likely that Echo would be motivated to undertake at least some of its published strategic investment plans in response to the introduction of COVER STORY competition.” Echo Chairman John O’Neill said only that the company is “exploring other initiatives”. But it’s reported that Malaysian conglomerate Genting Group recently bought another chunk of Echo’s swooning stock to lift their investment in the embattled operator, which is also under a concerted Crown assault in Queensland, to more than 7%, and they’ve applied to regulatory authorities in NSW for permission to increase that above 10%. “I’m sure there is another angle they are pursuing,” said fund manager and Echo shareholder Paul Xiradis. “They are a world-class operator.” Certainly they’re a resort giant every bit Crown’s peer, with holdings that include Singapore’s Resorts World Sentosa, the mega- slot house at ResortsWorld NewYork City and a sizable chunk of land on the Las Vegas Strip where they’re planning a casino with several billions of dollars’ worth of hotels and other attractions. As one prominent local investor put it, “This isn’t the end of the game.” As for Crown Sydney, what the corporate literature promises at Barangaroo is “a landmark building instantly recognizable around the world” with 350 rooms better than Forbes 5-star at 55-70 square meters standard and suites and villas of 100-500 square meters. There will also be 80 luxury apartments for sale. Not much detail has been released beyond that. There will be meeting and exhibition space, some of it outdoors. There will be “luxury sun decks” and no doubt something suitably spectacular 250 meters up on the roof. The public spaces will be targeted at the well-heeled with celebrity chef restaurants, bars and lounges, high-end retail, a state-of-the-art spa and an infinity pool. Construction is expected to take three and a half years once all the approvals have been obtained and the gaming license secured. Crown wants to open the hotel by 2018, the casino the following year when Echo’s monopoly expires. Barangaroo should be fully redeveloped at that point, and Crown expects it will be welcoming an average of 33,000 visitors a day. There is never mention of a “casino,” only a “VIP gaming facility,” a euphemism Mr O’Farrell and the government have readily embraced. It will occupy at most 20% of total gross floor area or 20,000 square Crown Melbourne