Echo Entertainment lose exclusivity in Sydney as Crown win casino battle

ators Crown Ltd have been given the go-ahead to build a new billion dollar casino in Sydney, ending Echo Entertainment Group’s exclusivity in the city.

Crown, bankrolled by billionaire James Packer, will press ahead with plans to build a new hotel and VIP casino in Sydney’s Barangaroo site located on the edge of the area’s central business district, towards the southern end of the Sydney Harbour Bridge. The location has recently suffered a decline in tourism, thought to be due to the lack of competition to Echo’s Star entertainment complex.

Echo fought for the right to remain the sole casino complex in the city, with their exclusivity agreement in place until 2019, however it has been decided in a New South Wales cabinet meeting that the plans submitted by Packer and Crown would offer a greater benefit to the state.

Barry O’Farrell, Premier of New South Wales and Minister for Western Sydney said Crown’s plans would “boost tourism, deliver extra tax revenue and contribute more to the economy than Echo’s proposal”.

In a statement to the Stock Exchange, Packer said: “This decision follows months of hard work by Crown to develop its proposal for an iconic six-star hotel resort on Sydney Harbour at Barangaroo South.”

Echo’s proposal would have seen their exclusivity extended, and their Chairman John O’Neil said in a statement: “We are disappointed that the New South Wales government does not share our vision.”

The Crown proposal now moves on to the next stage and will be open to public consultation.

Bruce Archer