Sydney's Star Casino offers $250 million for exclusive license

The company that runs Sydney's Star Casino has offered to pay the New South Wales Government $250 million if it is given an exclusive casino license until 2034.

Echo Entertainment had unveiled its plans for a $1 billion redevelopment in competition to James Packer's proposal for a $1.9 billion resort at Barangaroo.

Echo has put forward another surprise option that allows Mr Packer to run a VIP-only gaming venue and includes a Star Casino redevelopment - but drops a $250 million exclusivity payment.

However, Echo chairman John O'Neill says his company would prefer to be the only licence in town.

"But in the event that the Government felt that the hotel in Barangaroo had to go ahead and that the gaming facility was restricted in the very definitional sense to VIP only ... we could probably live with that," he said.

"It's not our preference, but I guess we're being good corporate citizens in showing that there may be a fall back."

Crown has lodged a proposal to develop the Crown Sydney Hotel Resort at Barangaroo under the State Government's unsolicited proposal process.

Echo's existing agreement limits the state to one casino license until 2019.

The NSW Government is assessing both plans.

Source: ABC News, 23 June 2013