Gold Coast second casino: Gaming resort quits global tourism hub interest

A global icon in gaming resorts has cashed out its chips and quit its interest in developing a Gold Coast casino - with a statement dropping a bombshell on the Global Tourism Hub process.

GLOBAL gaming resort icon Caesars has dropped a bombshell on the Gold Coast Global Tourism Hub process, saying it pulled out weeks prior to its mega-merger.

Caesars Entertainment has merged with US-based Eldorado Resorts in a $17.3 billion deal sealed on Tuesday, tipped as the reason for Caesars withdrawing its Gold Coast interest.

Straight after the merger, Eldorado boss Tom Reeg told investors any “opportunity internationally will have to be stupendous for us to run in that direction”.

Tourism Department Director-General Damien Walker, the top Queensland Government bureaucrat for the GTH process, told the Bulletin: “The clear advice to the department is that this decision by the company (Caesars) was a result of internal company changes and not the attractiveness of the Gold Coast market as an investment opportunity.

“This is not a concern as there are many global entertainment companies from markets across Asia and the United States who have a registered interest in delivering a new multi-billion integrated resort on the Gold Coast creating thousands of new jobs.”

But a Caesars statement to the Bulletin yesterday appeared to pour cold water on Mr Walker’s statement: “Several weeks ago, Caesars Entertainment decided that it would not pursue a casino licence in Queensland.”

The spokesperson for Caesars, which operates the iconic Caesars Palaces in Las Vegas amongst a worldwide portfolio, would not elaborate.

A gaming industry source said the statement spoke volumes, saying: “I would contest, the situation on the Gold Coast - given everything going on - it’s not as attractive as it might have been.”

The source acknowledged it was in part reference to Star Entertainment Group forging ahead with extra towers, bars and restaurants - and the debate about where to get pokies.

Caesars is cashing in its chips. Pic Mark Calleja

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Caesars Palace in Las Vegas. (L.E. Baskow/Las Vegas Review-Journal via AP)

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It’s understood a dozen players including American and Asian firms have registered interest after the Labor State Government opened an invitation to develop a Gold Coast GTH.

Entertainment and gaming giant Hard Rock has also been courting the State Government for the second casino licence.

There are still at least a dozen players at the table to be involved in the global tourism hub.

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Caesar’s first expressed an interest in expanding its interests to the Gold Coast two years ago.

In July 2017 the Bulletin revealed the company was in talks with ASF Consortium which at the time was planning a $3 billion integrated resort on The Spit.

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Caesars was previously interested in partnering in ASF consortium's Integrated Resort before it was shelved by the State Government.

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Caesar’s international development president Steven Tight visited the city and conducted a feasibility study.

Caesar’s expressed an interest in bidding on GTH.

Mr Tight returned to the Gold Coast in February 2018 and met with government officials and Mayor Tom Tate who told the Bulletin at the time the entertainment giant was open to partnerships.

He said the visit was to “better understand the current situation and maintain relationships with the various stakeholders”.

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“We are still analysing the market internally and are waiting for the Government’s tender process,” he said.

“We will then evaluate the eventual site once identified and decide whether or not to bid. We haven’t had detailed discussions with potential partners but in the past we have brought in partners in other recent Caesar’s projects.”

Mr Tight and fellow executives also had a separate dinner with Gold Coast tourism bigwigs at Mamasan Broadbeach.