Sydney's second casino a step closer

The New South Wales Government has announced that James Packer's proposal to build a second casino in Sydney has moved to stage 2 of consideration.

Seven weeks after the Government received an unsolicited proposal from James Packer to build a six-star hotel with high roller gaming rooms at Barangaroo, the heads of the Department of Premier and Cabinet and the Treasury have now given the go ahead for Crown to develop a more detailed plan.

The Premier Barry O'Farrell says the Government will not allow poker machines in the new development, and he has stressed it is only passed the first hurdle in a three-stage process.

"At the end of each stage the Government has the option of either giving the project the green light to proceed or a red light and it simply stops there," he said.

The Opposition supports the proposal on the grounds it will not have poker machines.

Its construction means Sydney will become the only state capital with two casinos - it already has Star City.

The Premier says any new casino will not be allowed to start operation until 2019 because of an exclusivity arrangement with Star Casino.

But if the project is given the go ahead, laws will have to be changed to allow a second casino licence in Sydney.

Source: ABC News, 25 October 2012