New casino for BrisVegas?

Queensland has Melbourne envy

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published September 20, 2012 12:18 pm AEST

Brisbane may yet earn its affectionate name of BrisVegas, if the Queensland Premier gets his way, with the city potentially getting a second casino.

Premier Campbell Newman has suggested that it will consider allowing a new casino to be built, once the Executive Building and the Public Works Buildings in Brisbane are demolished, as it looks to revitalise that part of the city.

Speaking at a business conference, Mr Newman suggested that they could knock the buildings down and then run a tender process to build a new five-star hotel, or a casino, and it could be Brisbane's answer to Crown Limited's (ASX: CWN) casino, hotel and entertainment complex in Melbourne.

According to the Courier-Mail, Echo Entertainment Group (ASX: EGP) was planning to build a 36 storey riverside casino, but the government knocked that proposal back earlier this year. Echo already owns Brisbane's only casino, Treasury. A second casino could have a negative effect on the Treasury's revenues, especially if they were built fairly close together.

According to press reports, Mr Newman has previously met with major Echo shareholder and Crown chairman James Packer, to discuss the proposal. Mr Packer is in the process of selling his 51% stake in Consolidated Media Holdings (ASX: CMJ), as he moves out of media into gaming.

It's likely that the proceeds from that sale will allow Mr Packer to take a bigger stake in Echo. Crown owns 10% of Echo currently, but has requested approval from the regulators to increase that up to 25%. Mr Packer appears keen on getting a new casino built in Sydney as part of his plans for a six-star hotel at Barangaroo, on Sydney's waterfront. He may need Echo's casino licence to do that.

News Corporation (ASX: NWS) has offered around $3.50 per share for Cons Media, but is waiting on a possible bid by Kerry Stokes' Seven Group Holdings (ASX: SVW). Seven already holds 24% of Cons Media.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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