Caesars Entertainment Corp. has penned an agreement with ASF Consortium that could potentially see the Las Vegas-headquartered gambling company operate the casino portion of a A$3-billion resort in Australian tourist city Gold Coast.
The agreement started due diligence and would allow the two involved parties to set the commercial terms for the operation of the future gambling venue, as reported by local news outlet The Australian.
It was four years ago when the Queensland government selected ASF Consortium, a group of Chinese-backed investors, as the preferred bidder for the development of a casino resort in the Gold Coast area. The developer originally proposed a A$7.5-billion complex on the artificial Wavebreak Island. However, environmental concerns prevented that project from being realized.
Under its current plan, ASF Consortium is set to build a A$3-billion resort in Gold Coast’s Southport Spit area, right next to the Sea World marine park. A public consultation on the project was closed recently by the Queensland government. Officials told local media that they would start discussions on the results from the consultation anytime soon.
Community approval and the subsequent approval from the government are two obligatory steps so that developers be able to proceed with the plan.
Earlier in 2017, ASF Consortium ability to complete the expensive project was questioned after media reports that it was at a A$6-million loss in the six months to December 31, 2016. However, the developer was quick to deny those reports, claiming that it had secured the necessary funding for the integrated resort. If and when build, the property will compete directly with The Star Gold Coast complex on Broadbeach Island, which is currently undergoing a A$1-billion renovation.
It was reported late last month that Caesars Entertainment has approached ASF Consortium in relation to the casino portion of the multibillion masterplan. Representatives for the casino company have reportedly traveled to Australia to explore the local market’s investment opportunities. Reports about Caesars’ interest in extending its footprint to Australia were later on confirmed by the company itself.
ASF Consortium confirmed shortly after that it has been in talks with a number of international casino operators and that Caesars has been among those.
Earlier this week, shareholders of the Las Vegas-based company approved its proposed merger with Caesars Acquisition Company. The merger deal was another important step that would allow Caesars’ main operating unit to exit Chapter 11 bankruptcy by implementing a court-approved reorganization plan. The planned restructuring is expected to be completed in October.
Caesars has revealed a big expansion strategy, which it intends to implement once the bankruptcy saga is securely closed in the past. The casino company plans to extend its footprint to some of the most attractive casino markets in the world, including Brazil, Japan, South Korea, Canada, and Australia, apparently.
