Tasmanian casino proposals in danger of being scrapped

A dispute between rival investors is jeopardizing plans to turn the small Australian state of Tasmania into a world class entertainment hub.

Federal Group, the owners of Australia’s first casino Wrest Point in Hobart, are planning a AU$100 million redevelopment of the property – which opened in 1973 – but say the investment is contingent on their monopoly on slot machines in the state being extended beyond 2023.

That ultimatum hasn’t gone down well with rival David Walsh. Walsh is the owner of Hobart’s Museum of Old and New Art and has put forward a proposal to build a High Rollers casino as an extension of the property.

However, the 54-year-old art collector has taken a similar stance to Federal Group and threatened to dump his plans should their monopoly be extended. As it stands, Federal Group also holds exclusive rights to operate casinos in Tasmania until 2023 but has indicated it would be willing to relax that side of the deal.

The State Government helped facilitate negotiations between the two parties earlier this year in the hope that both developments would go ahead but those negotiations have reached a stalemate with neither side willing to back down.