Wrest Point Casino in Tasmania is the oldest casino in Australia and the only legal gambling establishments in the state. Wrest Point, belonging to the Federal Group, has successfully takes advantage of the gambling monopoly for many years. However, recently the operator concerned that the Tasmanian Government plans to change the gambling policy in the island and to legalize several new casinos.
The exclusive contract Federal Group with the Government of Tasmania to expire in 2018, and the company intends to learn about the plans of the government in the gambling state. If the authorities confirmed their intention to extend the exclusive agreement, CEO of Federal Group has promised to hold in the Wrest Point Casino upgrade by $ 70 million. The resort with a casino plan to add new restaurants, bars and VIP-halls to attract international players. In addition, the operator has promised to spend $ 20 million on the development of a luxury hotel in Port Arthur and 10 million in the Country Club Tasmania repair. However, management believes that Federal Group, is totally inappropriate to make such investments if an exclusive license is not renewed. Yesterday treasurer Peter Gutvayn announced that the state government to resolve the issue on the future policy of gambling in Tasmania before the Easter holidays. Mr. Gutvayn said:
We face a choice. There will be no secret deals. The government will explain its position in the next six weeks. “
In deciding whether the government will pay special attention to the Treasury estimated that there is enough income that generates the Federal Group, taking into account the monopoly companies in the field of gambling. Lodging Association calls upon the Government of Tasmania to break the exclusive contract and to allow another company to develop the gambling industry of the state.
When the state government took a decision to provide a complete monopoly companies, the Tasmanian Government was in a position where needed guarantee a steady income. At that time, the only profit from the casino was successfully used for the development and implementation of a number of assistance programs in the region. Since then, market conditions have changed significantly and a number of operators ready to enter the gaming market Tasmania and discover new places.