Three months since revealing plans for a new development at Casino Canberra, it seems final investment decision is still a way off. The reason? Aquis Entertainment still hasn’t received permission from the ACT government for a poker machine license – an asset that the parent company sees as essential to financing the works.

 

 

It’s an interesting philosophical argument for the ACT Labor Party. The Canberra branch draws a significant amount of revenue from its four licensed club operations. In fact, The Canberra Times reported that the party had invested in even more in the controversial machines despite Chief Minister Andrew Barr indicating earlier this year that Labor may divest themselves of pokies entirely.

In fact, this is happening across Canberra, albet very gradually. Now, the ACT requires that one poker machine is forfeited for ever four bought and sold. Tat is, an organization that purchased 100 poker machines from another venue would only be able to install 75 of those machines, with the licence for the other 25 to be returned to the government. No new poker machine licences are being released.

 

 

In order to get the Aquis Entertainment bid acrss the line, the Government is looking at a number of models - including selling the Labor Club’s 504 pokies to Aquis as part of the party’s planned divestment. Another option – not favoured by Aquis – is to allow a third party to operate the machines within the casino environment, but still return the profits to the community under the current licence requirements.

Understandably, Aquis isn’t thrilled with this.

 

 

Professional gambler and ae philanthropist, David Walsh (pictured at top with wife Kirsha Kaechele) is searching for gambling revenue as well. His Tasmanian operation, MONA, was built at a cost of around $65 million and currently loses about $50 million dollars a year. Walsh seems unperturbed. In fact, the flamboyant collector has just released plans for extensions for a new library and casino (known as MONACO) and a hotel (temporarily named HOMO).

His casino is being blocked by Federal Group who have the exclusive license for Tasmania’s casino which operates at the Wrest Point Hotel. The casino was built 40 years ago, and looks very, very tired. For Walsh to build a high-rollers casino at MONA would put significant pressure on the Federal Group.

 

 

However, there might be a way through. Federal Group may be granted an extension on their current licence beyond its expiry in 2023. This leverage would then allow Walsh to build a pokie-free casino for high rollers as planned, and both casinos would operate concurrently, albeit for differing markets. It’s a lot of gambling for a city of barely 200,000 people.

For both Walsh and Aquis Entertainment, negotiations continue.