A recent report from market researcher IBISWorld has cited growing wealth in Asia as a reason to expect a significant boost in casino revenues in Australia. The rise in gambling has coincided with both the rise in wealth in Asia and the crackdown on illegal gambling operations, particularly in the famous Macau casino scene. The opening of three new casinos in the next five years will attract wealthy foreign gamblers and drive revenue to new levels. "IBISWorld believes the opening of these new casinos is reflective of strength in an industry being bolstered by high levels of domestic spending as well as increasing levels of foreign gambling dollars," the report said. Australian casino revenue is expected to surpass $6bn within the next five years.
IBISWorld senior industry analyst Spencer Little said the increased demand and competition in Asia explained the drive for new Australian casinos. The Reef Hotel Casino in Cairns, which opened in 1996, was the country’s most recent casino to open. Billionaire James Packer hopes his new Crown Resorts venture will fill in some of the demand for casinos in the Asian region. His company is building a $1.3bn luxury hotel and VIP-only casino at Barangaroo on Sydney Harbour. Two additional Chinese-backed casinos – the $8.2bn Aquis Great Barrier Reef Resort at Yorkey’s Knob and the $7.5bn mega-resort on the Gold Coast - are planned for construction in Queensland. Both of these casinos are expected to be fully operational by FY2018/19. "Both groups have signaled their intention to build luxurious, resort-style casinos to attract wealthy VIP gamblers from southeast Asia," Mr Little said.
Author: Imran Valibhoy
Apr 14, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.