The government in New South Wales is understood to have given no guarantees that the Star City exclusive casino licence will be extended later this year. Negotiations are ongoing and the government wants a bigger share of slot machine revenue, which is presently set at 24.5%. Tabcorp acquired the Sydney licence from Harrah’s in 2000, but its monopoly could be under threat when the exclusivity deal runs out on 13 September.

Reports that Macau mogul Stanley Ho could be interested in developing a second NSW casino first surfaced in February, when it was revealed that he had made contributions to the Australian Labor Party (ALP). The prospect of a rival casino, perhaps in Tweed Heads, would give the government further leverage in any negotiations on an extension to Star City’s exclusivity rights. Yesterday the Premier’s office confirmed that a private conversation between Stanley Ho and Premier Morris Iemma had taken place and that the issue was raised informally.

Prior to the March elections it was on record that there were no plans to establish a second casino. The ALP was returned to power although they lost Tweed in the election. It was previously thought that Tabcorp would be offered a 10-year extension of their monopoly, as studies have shown that the NSW economy may not support another casino. However, the interest from another operator gives the government a strong hand in the Tabcorp negotiations, which could well have to pay more for an extension than it had expected. (E-08.20.07)

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