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By Stewart Oldfield
Australia's richest man, Mr Kerry Packer, bought Melbourne's $2.1 billion Crown Casino last year because it was a sure bet, but he is about to be reminded that politics commands a powerful hand at every gambling table.
Mr Packer may have thought he could settle down to earning a lazy $200 million annually from Crown with minimum public attention and even less capital expenditure since Mr Lloyd Williams, Crown's former executive chairman and a friend of former Liberal Premier Jeff Kennett, left the building for good last Christmas.
But Victoria's Labor Government is keen to prove that it can walk the fine line between receiving an estimated $1.23 billion in gambling taxes next year and retaining the support of Victoria's strong anti-gambling vote, which helped it into government last October.
A spokesman for Gaming Minister Mr John Pandazopoulos confirmed yesterday that the Government intended to hold Crown to a commitment to build a $150 million, 465-room hotel and 1,800-seat theatre (cost unknown) that Melbourne does not seem to need.
If the theatre and hotel are not built by November 2003, Crown faces fines of $50,000 a day until they are. Crown chief executive Mr Ian Johnson can see a time in 2003 when there will be sufficient demand for the hotel, but he is less confident about the need for a theatre, and wonders whether it's a "sensible" proposition.
There seems no doubt that, while Crown says it is not seeking an extension for its 2003 deadline for the project, it is hoping that the Government will at least release it from its obligation to build the theatre. But the Government will be equally keen to avoid a perception that it is granting concessions to the casino, an accusation it made repeatedly against its predecessor.
Mr Williams committed to the expansion in the days when Mr Kennett was trying to establish Melbourne as the entertainment hub of South-East Asia, and perhaps the world. The expansion was subsequently written into the Casino (Management Agreement) Act.
But since then a number of five-star hotels have opened in Melbourne, including the Park Hyatt and Westin Hotel, and there are also many more theatre seats available, including the revamped Regent, Comedy and Forum theatres.
Mr Williams later succeeded in having the commitment deferred from 1999 to 2003, but was never able to get it scrapped altogether.
One way out for Mr Packer, at least when it comes to the hotel, would be to relocate Channel Nine's Melbourne operation into the new complex from its present home in Richmond.
But a Crown spokesman said there was no plan at present for such a move.
Another option would be to build a mid-market, purpose-built hotel catering for the growing convention market. But there is still the matter of the Lyric Theatre and those 1,800 seats.
It is not the only political issue that threatens to dent the casino's medium-term profitability. The Premier, Mr Steve Bracks, has taken a personal interest in the gambling industry and his Government appears likely to restrict the use of large-denomination note-acceptors on poker machines, which will annoy Crown's big-time punters.
The Government has already legislated a cap on the number of poker machines at Crown and is considering whether to ban smoking at the giant complex.
Australia's richest man, Mr Kerry Packer, bought Melbourne's $2.1 billion Crown Casino last year because it was a sure bet, but he is about to be reminded that politics commands a powerful hand at every gambling table.
Mr Packer may have thought he could settle down to earning a lazy $200 million annually from Crown with minimum public attention and even less capital expenditure since Mr Lloyd Williams, Crown's former executive chairman and a friend of former Liberal Premier Jeff Kennett, left the building for good last Christmas.
But Victoria's Labor Government is keen to prove that it can walk the fine line between receiving an estimated $1.23 billion in gambling taxes next year and retaining the support of Victoria's strong anti-gambling vote, which helped it into government last October.
A spokesman for Gaming Minister Mr John Pandazopoulos confirmed yesterday that the Government intended to hold Crown to a commitment to build a $150 million, 465-room hotel and 1,800-seat theatre (cost unknown) that Melbourne does not seem to need.
If the theatre and hotel are not built by November 2003, Crown faces fines of $50,000 a day until they are. Crown chief executive Mr Ian Johnson can see a time in 2003 when there will be sufficient demand for the hotel, but he is less confident about the need for a theatre, and wonders whether it's a "sensible" proposition.
There seems no doubt that, while Crown says it is not seeking an extension for its 2003 deadline for the project, it is hoping that the Government will at least release it from its obligation to build the theatre. But the Government will be equally keen to avoid a perception that it is granting concessions to the casino, an accusation it made repeatedly against its predecessor.
Mr Williams committed to the expansion in the days when Mr Kennett was trying to establish Melbourne as the entertainment hub of South-East Asia, and perhaps the world. The expansion was subsequently written into the Casino (Management Agreement) Act.
But since then a number of five-star hotels have opened in Melbourne, including the Park Hyatt and Westin Hotel, and there are also many more theatre seats available, including the revamped Regent, Comedy and Forum theatres.
Mr Williams later succeeded in having the commitment deferred from 1999 to 2003, but was never able to get it scrapped altogether.
One way out for Mr Packer, at least when it comes to the hotel, would be to relocate Channel Nine's Melbourne operation into the new complex from its present home in Richmond.
But a Crown spokesman said there was no plan at present for such a move.
Another option would be to build a mid-market, purpose-built hotel catering for the growing convention market. But there is still the matter of the Lyric Theatre and those 1,800 seats.
It is not the only political issue that threatens to dent the casino's medium-term profitability. The Premier, Mr Steve Bracks, has taken a personal interest in the gambling industry and his Government appears likely to restrict the use of large-denomination note-acceptors on poker machines, which will annoy Crown's big-time punters.
The Government has already legislated a cap on the number of poker machines at Crown and is considering whether to ban smoking at the giant complex.