Echo the Australian casino operator with operations in Treasury Casino in Brisbane, Jupiter’s on the Gold Coast and the Townsville Casino are feeling the pressure with new licenses and casino resorts all planned in their neighborhood. The companies share price has dropped 5% over the last few days.
Queensland is freeing up licenses that were previously blocked to allow more casinos in the state along with at least one super casino resort, which is certainly going to impact on Echo.
On the Gold Coast, at least two bidders are hoping to secure approval to begin constructing a casino and resort at Wavebreak Island.
Tony Fung is expected to start building his huge Aquis Great Barrier Reef Resort after local authorities gave the green light so long as the billionaire agrees to certain enviromental criteria’s.
Then there is James Packer who believes he will be allowed to enter the local market with an alternative large integrated resort development in opposition to Echo sent the share price of the Sydney-based company tumbling.
Gold Coast Mayor Tom Tate said he believed the Wavebreak Island project was ripe for a casino licence.
“If you have a casino there, it will be high revenue coming straight in for the State Government,” he said.
It all adds up to a tough time for Echo and its CEO John Redmond, who has made no comment on their tumbling shares and the competition heading straight their way. It seems a long time ago now that Echo had a monopoly in the state.
