Market Researcher Foresees AU$6.2 Billion Growth in AU Casino Industry
IBIS World, a leading publisher of business information via thoroughly and accurately researched and procured business data, recently came out with a report predicting that Australia’s casino industry will see growth by as much as AU$6.2 billion in the near future.
Market researchers at IBIS World led by Senior Industry Analyst Spencer Little, reports that the establishment in the next five years of three new casinos, poses as main driver of potential gambling growth. As it is, all three forthcoming casinos aim to draw high rollers coming from foreign countries. Apparently, IBIS World believes that the launch of those new casinos is indicative of strength in an industry supported by high levels of domestic spending, accompanied by escalating levels of gambling dollars brought in by foreign nationals.
Mr. Little explained that the last time Australia had a new casino was in 1996. It was when the Reef Hotel Casino in Cairns, opened its doors for business. He added that the current state of stagnation is about to change, with the construction of Crown Resort’s AU$1.3 billion VIP-exclusive luxury casino in Bangaroo at Sydney Harbour, a project spearheaded by Crown major shareholder billionaire James Packer.
The IBIS World Senior Analyst cited the two resorts-casino development projects in Queensland. These are the AU$8.2 billion Aquis Great Barrier Reef Resort in Yorkey’s Knob, financially backed by prominent Chinese business tycoon Tony Fung; and the AU$7.5 billion Gold Coast mega-resort of the Chinese-Australian Investment Consortium firm, the ASF Group.
Based on business information gathered by IBIS World, both Packer’s Crown Resorts and Fung’s Aquis Resorts have voiced plans of building luxury resort-style casinos targeting wealthy Southeast Asian VIP gamblers.
He added that the success of the three new casinos will in part, be affected by competition coming from other casino markets in the Asia-Pacific region. The IBIS report takes into consideration the Macau gambling Mecca and the possible lifting of the casino gambling ban in Japan. Still, despite such competition, Mr. Little believes that Australia’s casino industry will benefit from the additional tourists that would flock in.
The two upcoming Queensland casinos are slated to start operations by fiscal years 2018-19, The proposed Aquis Resort Casino at the Great Barrier Reef plans to install 750 casino tables and 1,500 electronic gaming machines, as part of plans for targeting wealthy Chinese tourists. In addition, the resort development project includes two 2,500-seat theatres and a 13,500-square metre property for sophisticated high-end retail stores.
The Crown Bangaroo Resort Casino in Sydney is expected to be operational by late 2019. It plans to operate by catering to members and guests, while requiring minimum bet limits to those who wish to play; and definitely will not be accessible to the general public. However, the planned Crown Resort Casino that will rise at the southern end of the Harbour Bridge at Sydney, will operate under a restricted licence. One of the licensing conditions for the casino’s operation is the exclusion of pokie machines after November 15, 2019, once the resort casino opens for business.