Casinos earn well for state Govts

Press, 13 April 1988, Page 30

Casinos earn well for state Govts

NZPA-AAP I | Brisbane Five Australian state and territory Governments are finding that a casino, in cockney parlance, is "a nice little earner.” ! j

The nation’s eight casinos in the Northern Territory, Queensland, Tasmania, Western I Australia and South Australia help to bankroll multimillion dollar state development projects that might otherwise be ‘in doubt because of dwindling Federal funds. .1 While the new [New South Wales Government last week confirmed an election 'vow ito exclude casinos from the most populous statej Queensland, the A.C.T. and Northern Territory expect to allow more to open. I The newly elected 'New South Wales Liberal Premier, Nick Greiner, said he had opted against a casino, because his state’s record of chronic corruption convinced 1 him it would be iimpossible to ensure that organised crime would) not use gambling to launder “dirty money.” I But the I states [with casinos belieye their I tight legislative controls have helped them win the gamble against organised crime taking control as it often did in the United States.

There is no hard evidence of infiltration 'here by either organised crime or ! small-time rogues. While Queensland’s Fitzgerald Inquiry into alleged bribery, and corruption has uncovered a few skunks in the so-called law-and-order state, the Gold Coast and Townsville casinos remain odourfree.

Queensland is likely to have at least two further casinos within the next decade in Brisbane and Cairns. Space has been allocated for a casino in the redevelopment plans

for the Expo 88 site on the south bank of phe Brisbane River. i ) A Brisbane casino is likely to trim the sAusBl million ($92 million) a year takings of JupiterS casino on the Gold; Coast, as .well as close Brisbane's illegal gambling joints if the Fitzgerald Inquiry does not achieve this first.

Jupiters’ latest 'results show a 358 per cent jump in December half-year profit to sAusl2.6l [million ($14.3 million), just j two years after opening. | , But Townsville’s) casino is yet to produce a profit. The Breakwater | Trust, which runs the ) casino, earlier announced) a sAussB6,ooo ($668,000) loss for the December half year on revenue of a comparitively ! modest sAusl4 million [ ,(315-9 million), perhaps the most disappointing income for any Australian casino. Canberra, too, is likely to have a casino soon. The territories Minister, Gary Punch, has announced a social impact study of the proposal.

In South Australia the sAus3o million ($34 million) Adelaide Casino, built in the shell of the city’s main railway station, has proved a bonanza for the South Australian Government since it opened more than two’ years ago.

Takings in 1986/87, fits first full financial year, i topped sAus23B million ($271 million), resulting in an sAuslo.s million ($11.9 million) tax wind- ' fall for the state. However; other gambling codes, such as the T.A;B., claim they are losing out because punters have only so much to spend, j

Adelaide casino has tried to interest all types of gamblers. High rollers from interstate . and overseas have b,een enticed to compete in cardplaying contests, including the national blackjack

competition started last 1 year- ' ' I ■ ) . 1 But' l it is not! always easy! money in [the casino) game. i . ' i In the Northern Territory’, controversy has' dogged the comparatively: small Darwin 1 casino since it opened in. April, 1983,) under the ownership of Federal Pacific Hotels.

Through legislation) the Northern Territory Government effectively' re/ moved Federal Hotels in ; 1984, arid ownership of the .1) Diamond Beach Casino-Hotel [was handed to the Northern Territory Trust. ■: I . [ The N.T. | Government ) has ) declined to release details of the takeover deal- but revealed the Darwin and Alice Springs’ : casinos [ paid ' sAusl.4 ; million ($1.5 million) in taxes and levies'in 198687. The government projected an sAus2 million . ($2.2 million) return from both casinos' in the; current financial year. ! Adding to [the debate in Darwin are [proposals for the I city’s second casino by a local developer; George Milatos, and a forecast by 'Federal-Paci-fic that it will “kill” the Darwin casirio if it goes ahead with plans to build one'on Christmas Island.'

The Darwin casino is Australia’s second smallest ) but) has successfully lureid 'Asian gamblers, particularly j from Singapore. | i

A gauge of the Asian clientele’s value was a 10hour gambling spree last Christmas Day. A group of Chinese) [ businessmen turned over' an estimated sAusls ' million ■ ($l7 million) on' baccarat — and lost! They wagered the'maximum sAusso,ooo ($57,000) against the banker in each game they played.

Lasseter's; in Alice Springs, Australia’s smallest casino, was also owned

by Federal Hotels . until taken over by the Australian business tycoon; Bill Ford, in September, 1986. Unlike other {Australian casinos, it does not rely on any {particular ; geographical . base for , its clientele, j ~ | ' ■ While federal Hotels, a private company not required to{ repoi-t financial results, lost the Northern Territory’s Daryin casino, the group j appears to be in the black in | Tasmani where it {runs the {Hoba: and Launceston gaming establishments, Mi!

According : , j |* to Tasmanian commentators, the Hobart casino —- Australia’s first —! is among the country’s most successful and prestigous, helped by its ! excellent convention facilities.; In, Perth the[ Burswood Casino provides business for the} nearby 'pawn shops that have] sprung up along the Great Eastern Highway! What began as a tHckle when the casino opened two years ago has turned into a steady flow of unlucky punters exchanging valuables for i cash — either to) fund their return to the tables and roulette wheels dr tide them over until the next [ wage packet. I In the) June 30 financial year, the casino drew 2.6 million patrons —, 7100 a day — and notched up a net profit of sAusl4.6 million ($16.6 million) on revenue: of ! sAiisB6.6 million ($98.7 million). But in its half-year report released this rponth, the casino manager revealed a 23 per cent fall in interim ’profit to sAus6.34 million j ($7.2 million) for ! the! six months to December 31. Still, last year’s contribution to the state government coffers ! was sAuslo.93 million (j 512.46 million). Not a bad return for no outlay. ■