Star casino strikes back against Crown's plans

The operators of Sydney's Star Casino have launched a counter-strike against James Packer's plans to build a high rollers casino at Barangaroo.

Echo Entertainment's current agreement limits New South Wales to only one casino license until 2019, but it has proposed to extend that arrangement as part of plan to build a casino-based resort at Pyrmont.

The proposal is on a direct collision course with Mr Packer's unsolicited plan to build a high rollers room as part of a six star hotel at Barangaroo once the Star's exclusivity arrangement ends.

State Premier Barry O'Farrell says only one plan can be given the green light.

"Both of these proposals are going to be considered under the same process, because both can't proceed," he said.

"You can't proceed with the Crown proposal if Echo gets an extension of its exclusivity arrangement.

"So under the stage-two process, advice of which will come to government, it's likely that only one of these proposals could proceed."

Nomura gaming and consumer analyst Nick Berry says Echo Entertainment had no choice but to take on Crown, and if their proposal failed to gain approval they could pursue two other options.

"[The current proposal] was probably one of three," he said.

"The other two being Echo looking to build its own second development in the place of what Crown is proposing at Barangaroo, or indeed looking to partner or joint venture on VIP with a larger international operator."

If Echo Entertainment's current proposal is successful they are promising to invest more money in the Star to make it worthy of the exclusivity extension.

But it is unclear how long they want the exclusivity arrangement extended for, which Mr Berry says depends on Echo's potential deal with the NSW Government.

"That depends on the level of capital that they'd be looking to commit or that the Government would look for them to commit as part of any development or expansion of the existing property," he said.

Mr O'Farrell says both proposals will be assessed by the end of May.

"It's expected that to what was to be a process in relation to Crown that would finish at the end of this month is now likely to be delayed until next month," he said.

"But of course that would be subject to the work done by the independent assessment committee chaired by David Murray.

"To bolster the property around this process, particularly now that its become a two winged process, retired appeals court judge Ken Handley will be there to provide probity advice."

Mr Packer's company Crown Limited has declined to comment.

Meanwhile the State Opposition has renewed its call for transparency around plans for a second Sydney casino.

Opposition Leader John Robertson says there is scant detail about Echo's plans, and the process around Mr Packer's proposal has already been marred by unnecessary secrecy.

"It's in everyone's interests that as much information that can be possibly made available is made available to the public so that there is an informed process that can be put in place," he said.

"Openness, transparency and honesty are absolutely critical to anyone having any confidence in this government's ability to deal with this issue transparently."

Source: ABC News, 9 April 2013