By Andrew Starke
Tabcorp Holdings has announced an expansion of its investment program in its three Queensland casinos from the $175 million investment announced in October 2010 to $625 million.
The investment aims to deliver three world class entertainment destinations and provide a boost for the tourism and entertainment sectors in the state.
The deal follows in-principle agreement with the Queensland Government on a package of concessions that will support the long-term growth of the properties and the viability of the investment.
However it is subject to Tabcorp entering into a binding agreement with the Queensland Government, as well as regulatory, council and other planning approvals.
Tabcorp Chairman John Story said that the investment shows confidence in the long term future of the Queensland tourism market.
“The Queensland investment follows the redevelopment of Star City in Sydney,” he said. “Together, these investments will make the casinos an attractive growth business following the proposed demerger from Tabcorp.”
Tabcorp has reached in principle agreement with the Queensland government on a number gaming concessions that will support the overall investment.
The main concessions are:
- 500 additional Electronic Gaming Machines (EGMs), and transfer of 47 EGM
- 50 additional table licences
- Reduced tax threshold for interstate and international VIP customers
licences from the Townsville casino to Treasury or Jupiters on the Gold Coast
The gaming concessions are subject to regulatory approvals.
Currently, the Queensland casinos hold a total of 3,136 EGM licences and 265 table licences.
The Queensland Government has also agreed to review the classification of Multi Terminal Gaming Machines (MTGMs) within 18 months.
MTGMs are currently classified as gaming machines instead of table games despite the fact that these offer customers an electronic version of games such as roulette and blackjack.