Sydney's Star Casino is up for a major expansion once the Australian government approves the $1 billion plan submitted by gaming firm Echo Entertainment.
Echo Entertainment's expansion plan covered the building of two new luxury international hotels aside from expanding the casino. It also included an option that will allow rival Crown Ltd to open a VIP-only casino in Sydney, which is seen as an effort to thwart Crown's plan to add to its Melbourne casino. Crown had earlier expressed interest in opening a VIP casino in Sydney.
According to reports, Echo, which has the exclusive license to operate a casino in Sydney until 2019, had also offered to pay the Australian government $250 million to retain the exclusive license as casino operator after 2019.
Alternately, Echo had proposed the building of the hotel and the development of the casino, and allowing Crown's casino project to proceed provided it will be open only to VIPs. However, under this scheme Echo will no longer pay $250 million for exclusivity arrangements.
The New South Wales government had reportedly said it will approve only one project, either the building of a new casino by Crown, or Echo remaining as the sole gambling operator.
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