Spit development: Gambling war over Gold Coast market

THE ASF Consortium has put its chips on the table in the gambling war between Australia’s two casino giants, admitting it is in “serious and active” talks with James Packer’s Crown group.

The Gold Coast’s Spit. Photo: Mike Batterham

THE ASF Consortium has put its chips on the table in the gambling war between Australia’s two casino giants, admitting it is in “serious and active” talks with James Packer’s Crown group.

But Crown’s main competitor Star Entertainment Group, owners of the city’s sole casino at Jupiters Hotel, reacted by saying it was committed to “funded, rock-solid commitments to Queensland.”

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On Friday, Star announced it had gained approval for a $500 million, 200m hotel at Broadbeach as part of its $845 million Jupiters masterplan.

ASF director Louis Chien: Crown the obvious choice to operate casino at The Spit. Photo: David Clark

ASF director Louis Chien said that while it was early days, Crown was the obvious choice to operate its casino at The Spit.

“If you are privy to some of the market reports they have seen and we have seen, it says there is potential,” he said.

“They are a well-known Australian business, they have done well in this space and if there is potential and there is a market, in growth and tourism then they are fully interested in operating in Queensland.

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“They are backing out of Vegas and cutting back on Crown stakeholdings to focus more on Australian business and opportunities here so read into that how you want.”

Mr Chien said an operator for the resort’s casino would be announced once ASF had greater clarity from the State Government.

An artist’s impression of the Jupiters redevelopment.

It comes after a tough year for Crown in which 18 employees were detained in China over “gambling crimes”.

ASF had previously linked with US-based company Global Gaming Asset Management in 2014 when it was planning to redevelop Wavebreak Island to build a $7.5 billion integrated resort and cruise ship terminal.

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However, that company departed the project after the Palaszczuk Government axed the Wavebreak development in April 2015.

Star are working on big plans for The Spit’s Sheraton Mirage, which neighbours the ASF site on Sea World Drive.

Inside The Spit’s Sheraton Mirage.

Star, which will next year break grown on its own $3 billion Queens Wharf integrated resort in central Brisbane, are settling a $140 million deal for the 1980s-era beachside hotel with plans for a “European beach club”.

A casino will not be built there, leaving Jupiters as Star’s sole Gold Coast gambling facility.

A Star spokesman yesterday said the company was focused on delivering “real economic drivers” for the state.

“Our focus is on continuing to deliver world-class tourism and entertainment offerings to Queensland, real economic drivers for the state, at both Gold Coast and in Brisbane,” he said.

“The $845 million investment at the Gold Coast — which includes the new tower and with the prospect of more to come — sits alongside plans for the $3 billion Queen’s Wharf Brisbane project as funded, rock-solid commitments to Queensland.

“Of course, in relation to our overall Gold Coast master plan, any further developments will be considered with the knowledge we have at the time on competitive and market conditions.”

The new high-end tower will be the third to be erected on the site, with construction expected to be completed by 2020.

Further towers are featured in Star’s masterplan.