The South Australian government released on Tuesday plans for the redevelopment of the Adelaide Casino area. The gambling venue is located in the capital of the state and is managed by New Zealand gambling operator SkyCity.
The company had previously introduced a A$350-million plan for the redevelopment of its property. However, last week, SkyCity said that it was disappointed with the performance of the casino and pointed out that construction may not start anytime soon.
The state government said that it was concerned about the future of the project and this is why it has been preparing backup plans in case SkyCity decided not to proceed with work on the proposed redevelopment.
On Tuesday, South Australian officials released their contingency plan to the public. To be more precise, they presented basic drawings that had been prepared for a board meeting of the Adelaide Riverbank Authority, held on July 27. The renderings showed several development options for the casino area, particularly the space located north of the venue. The state government sees that particular site as an important part of the proposed redevelopment of the Festival Plaza.
People with knowledge of the matter said that the released renderings could be seen as a means for officials to put certain pressure on SkyCity in order for the operator to begin work on its project. The company and the South Australian government are to negotiate the terms of the proposed redevelopment in the days to come.
Back in 2012, SkyCity revealed its plan to implement certain changes in the casino area and to expand its operations by adding new facilities. The company said that it would spend up to A$350 million on the project. According to the information it released back then, the expansion was to include the addition of more gambling options, a new hotel, VIP suites, a number of food and beverage options, etc. A rooftop pool and a spa are among the project’s highlights.
The proposed expansion is part of the South Australian government’s plan to redevelop the Riverbank precinct area.
A spokesperson for SkyCity commented that the company could not provide a specific timetable for the project as this should be coordinated with stakeholders, with the South Australian government and the Walker Corporation included.
Earlier this year, real estate developer Walker Corporation reached an agreement with South Australian officials for the redevelopment of the so-called Festival Centre Plaza. The amount of A$600 million is expected to be spent on the ambitious venture. According to official information, the project is to take up to three years to be completed.
John Rau, Deputy Premier of the state, noted that he would be encouraging SkyCity to make its decision whether it would develop the Adelaide Casino area as soon as possible. The official also pointed out that it is an important space to be redeveloped and that they will be ready with a “plan B”, in case the gambling operator scraps its A$350-million project.
