Tabcorp Seeks Growth Through Casino RevampTuesday 17 August, 2010 16:40
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In a bid to improve falling profits, Australian gambling company, Tabcorp has rolled out plans for the coming years. In particular, the group said that would be investing hundreds of millions of dollars on a makeover for its Sydney based casino. The idea to spend $860 million on improving Star City is to attract overseas big spenders, including Asian VIP's who are always on the lookout for top quality luxury gambling establishments. Tabcorp Holdings reported weaker than expected profits in the the second half and pinpointed a few problematic areas. A fall in sales at its Queensland casino, for example, affected profits, as did weakness in gaming overall and higher interest rates. The Chief Executive of Tabcorp, Elmer Funke Kupper said: "While recent trading shows improved activity levels, it is too early to be confident that all markets will return to growth this year." "This will depend on an improvement in economic activity and discretionary spending," he noted. The revamping of Star City will cost the group an extra $285 million, above the budget of $575 million originally set aside. The expansion will include the building of luxury hotel suites, private aircraft to fly in VIP players from the Asian continent and private gaming facilities. "Our investment in world class VIP customer facilities, restaurants and entertainment will ensure that we grow both the market and our position in the market," said head of casinos for the group, Larry Mullin. Tabcorp also needs to pay the New South Wales government $100 million for a gambling license. |
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