Australia is currently undergoing what could be described as a massive expansion of its casino industry. More than A$15 billion are to be spent within the next decade for the construction of new luxury integrated resorts and the renovation of existing casino complexes across the nation in a bid for wealthy gambling customers from China and the Asia-Pacific region, as a whole, to be attracted.
However, many have voiced concerns that such an expansion in Australia’s casino sector may not prove to be viable, especially given the fact that China is seeking to put strict limits on the amounts of money leaving the country as part of President Xi Jinping’s crackdown on corruption and money laundering. According to people with knowledge of the matter, the effects of China’s anti-corruption campaign would inevitably go beyond Macau and would probably influence those spending big in Australian gambling venues.
Given the several large-scale projects that are to materialize in modern integrated casino resorts over the next decade, it seems that casino operators are less worried about the possible drop in revenue from Chinese high rollers.
Australia launched its first casino in Tasmania in the early 1970s. Since then, a number of gambling venues have opened doors both in capital and in smaller cities. Up until recently, casino regulations allowed for only one casino per city.
However, in 2013, the New South Wales government granted a license for the construction of a second casino in Sydney. Australian casino mogul James Packer and his company Crown Resorts are to build Crown Sydney, a A$2-billion six-star hotel and casino resort in Barangaroo.
Apart from Mr. Packer’s ambitious project, an integrated resort is expected to open doors in Brisbane’s Queen’s Wharf precinct, with that one to be managed by Australia’s other major casino company – The Star Entertainment Group. The company is also planning to spend A$1 billion to upgrade its existing Sydney casino. The Gold Coast casino will also be renovated and Adelaide’s casino is awaiting a A$300-million expansion, with a new hotel and more gaming areas to be added.
All these and several other ambitious projects across Australia are banking on the continued increase in the number of Chinese tourists traveling to the country. More than a million Chinese visited Australia last year, up 22% from the figure posted for 2014.
Commenting on the massive casino expansion, Nick Xenophon, independent Senator for South Australia and staunch opponent of gambling, has recently said that it would have quite a lot of negative consequences for residents of Australia. Sen. Xenophon as well as other opponents of what is currently going on in the country believe that the establishment of new casinos may result in an increased presence of organized crime gangs and the venues being used for money laundering. What is more, this could add to Australia’s already serious problems with gambling addiction among residents.
However, many have pointed out that the casino expansion may actually prove to be helpful to local and overall economy, especially if locals are recruited to work at the new venues and if those offer a wider variety of entertainment options beyond the gambling ones.
