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AUSTRALIA


Australia: a mature market under threat


Macau Business reports on the state of play Down Under, where gaming machines rule the roost but the threat of ‘pre-commitment’ is causing operators and manufacturers sleepless nights


A


ustralia and Macau are almost in the opposites ends of the spectrum as far as gaming models go. In Macau the mainland tourist VIP based model is responsible for well


over 70 percent of the revenue. In Australia slots, or pokies as they are known “Down Under,” represent around 60 percent of the gaming market. The country boasts more 200,000 slot machines, which according to research conducted by TNT, represents 2,76 percent of the world wide installed base of gaming machines. The number of gaming venues in Australia is also nothing short of massive: over 5,700. If almost every bar or club in Macau features a karaoke lounge as part of its entertainment offer, almost every pub or community centre in Australia has been


Rising Star


Sydney’s new Star lights up Australia’s gaming and entertainment offer


T


he US$870 million transformation of Star City into The Star does not fail to impress. Once fully complete, The Star complex will boast more than 20 restaurants, bars and cafes,


the new luxury boutique hotel The Darling, a 16 room spa, upscale retail collection, a 4000 capacity entertainment centre and world class gaming areas. The first two phases launched late 2011


40 DECEMBER 2011


attributed a license to operate slots, from the most upscale trendy bar in Sydney or Melbourne to the singular beer house of a lost town in the middle of the Outback. Call it a cultural phenomenon. After slots, casino and race betting are the


most relevant sources of gaming revenue in pretty much equal footing, followed by sports betting, lotteries and lastly keno and interactive gaming. Racing is particularly strong in Australia with almost as much weight as casinos but having registered a 10 percent growth in 2008-2009 and raking in US$19.4b. Casino revenue from 13 venues in the same period was slightly higher at US$19.8b but registered only a 5 percent increase in the same period according to Ernst and Young research. Australia is a far cry from Macau in this area, with regulators still considering the liberalization of sports and


including the rebranding of the oldie Star City into the contemporary The Star and the opening of The Darling. The Darling complements the existing


Astral Towers and Residences and brings the total number of rooms and suites across The Star to more than 650.


Larry Mullin, CEO of Echo Entertainment


Group, which owns and operates The Star, says the redevelopment represents one of the biggest tourism and entertainment investments in Australia today: “This $870 million investment will position us as a powerful force in entertainment and gaming.” When it debuted in late October The


Darling Hotel and Spa was the first five star hotel to open in the Sydney Central Business District since the 2000 Olympics. Two-part in its design, the hotel has a distinctive inverted glass tower resting on a sandstone podium. The Darling’s exterior is a nod to the rich history of sandstone used


race waging and lotteries. Another grand difference with Macau is the


regulatory framework with Australia being a highly regulated and mature jurisdiction with general federal legislation combined with different territory-based legislation to which operators have to abide by. PriceWaterhouseCoopers research had


Australia as the second largest gaming market in Asia Pacific back in 2009, but that was before Singapore came into play. An uncertain economic outlook and intense competition, especially in the regional VIP markets, have earned Australia the slowest growth rate in the Asia-Pacific in the eyes of the researchers. PWC expects the Australian gaming market to reach US $3.1 billion by 2014 at a 3.2 percent growth, while expecting Singapore to climb to $8.3 billion and Macau trailblazing to a


around Sydney, reintroducing Pyrmont to the CBD and encouraging pedestrians to pass by the hotel via an enormous atrium that runs the length of the hotel. The suspended 3.5m2 vibrant red Swallow which greets guests at the entrance to The Darling is formed by over 400 individual facets and is carrying two diamonds in the shape of a double cherry. With its integrated bars, lounge areas and a


custom made billiard table, the hotel lobby has been designed as a gathering point for Sydney residents and hotel guests alike, bringing the concept of ‘lobby socialising’ to Sydney. Positioned in the premium tier of the


market, the new boutique lifestyle hotel aspires to offer an enhanced level of service — from the individual check-in desks at reception to a host in the lobby accommodating every individual need of the discrete VIP patron. With its prime position near Sydney harbour


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