Australian casinos courting the high rollers

Just about every major Australian Casino (terrestrial) has ambitious plans for facilities improvements with the prime objective of winning a slice of the Asian high roller market.

• Crown Casino in Melbourne declared their hand early in the year, with a planned $212 million face-lift to VIP gaming areas, including 11 new private gaming salons, a significant upgrade to their existing VIP Mahogany Room and a refurbishment of the Crown Towers Villas.  New high stakes gaming tables will cater for bets up to $280,000 per hand.
• Jupiters Casino on the Gold Coast is being upgraded to the tune of $175 million.
• Subject to easing of gaming regulations, SkyCity are talking up a $250 million extension of their Adelaide casino.
• Perhaps the most serious tilt at making waves in the market is coming from Sydney’s Star City casino.  Owners Tabcorp (who also own Jupiters) are spending $890 million to transform the casino into what they hope will become the high rollers casino of choice.

Included in Star City’s plans is a $100 million budget to procure 2 long-haul private jets to fly VIPs in from Asia. The Bombardier Global Express, Gulf Stream 550 and Boeing’s Business Jet are planes apparently on their wish list.  They also plan to redevelop the casino’s waterfront area into a wharf big enough to park the world’s largest ocean going private yachts.

“The only issue we would have is that they fit under the Harbour Bridge.” says CEO Larry Mullin.  No problem there.  I think the Queen Mary II is one of the few boats  that struggles to get under the bridge.

Winning the affections of big players, or ‘whales’ as they’re sometimes referred to is potentially very lucrative.  70% of Macau’s gaming revenue comes from high rollers.  Granted Macau is a junket driven market but still, the value of VIP players can not be argued…the trick is getting them to play at your casino.

But will an $890 million face-lift and free transport be enough?

In an era when wow factor comes with multi-billion dollar price tags, I can’t help but think that a few hundred million may be short if the mark.  The Marina Bay Sands in Singapore cost well over $5 billion.  Planned casino projects in Macau are all north of $3 billion.

$890 million may well be taking a knife along to a gun fight.

But then maybe the pulling power of Sydney shouldn’t be underestimated?  Players can take a break between $200,000/hand baccarat sessions and do the Sydney Harbour Bridge climb, take a dip in surf at Bondi or really let their hair down and join the Mardi Gras parade.