Adelaide Casino up for sale (pics attached)
South Australia's only casino, opened in 1995, is officially up for sale again through the South Australian State Government Funds department. The access lease and license for the casino are up for grabs, along with long-term leases for the neighboring Hyatt Hotel and Riverside office complex.
Since the offer was announced mid-August, the Hyatt Hotel has been scooped up.
Estimates of the value of the Adelaide Casino lease and licence have varied from A$120 million to $350 million.
Following a stagnant period in the late 80's and early 90's, Mr John Frearson took the helm as CEO and re-positioned the property as a boutique property accessible to the local market.
"Some three years ago we changed the direction of the business to one of broader entertainment appeal and focussed it firmly on the South Australian market. This shift, together with the introduction of new marketing initiatives on a regular basis, has proved to be a successful formula," said Mr Frearson.
The latest results show the casino reporting a 22 per cent rise in 1998/1999 before interest, tax, depreciation and amortisation (EBITDA) to $21.2 million. In addition, gaming revenue is up 2.9 per cent to $A$77.8 million.
Funds SA chief executive Mr Lew Owens, expects to have preferred casino bidders selected to undergo probity checks by December 1999.

Expansion for Burswood
Perth's Burswood Casino-resort has won approval for a $75 million overhaul, with an increase in capacity to host 1,800 convention
delegates, add a new restaurant and 500-seat food hall, expand their Irish pub by a third and upgrade its gaming area with new machines and tables. The project is scheduled to start in January 2000 and be completed by June 2001.
According to Chief Executive Mr Ed Posey, the outlook for Australian casinos is positive. Based on the US experience, casinos can generate growth by tapping into the domestic market.
Burswood is hoping that new air routes to Perth will open its international visitor appeal, after a 24.5% drop in annual earnings to $30.9 million.
Its international commission business declined 32.9%, due to a drop off in Asian high rollers predominantly from Indonesia, with other junket gamblers from Singapore and Thailand.
The group's revenue slumped 10% to $372.7 million, with total casino revenue down 16^ to $299.5 million. Nevertheless, food and beverage gained 15% to $46.6 million and rooms revenue increased 25% to $16.6 million.
As a result of the slump in casino revenues, the company is now moving to widen its appeal as a resort and convention venue. Mr Posey said that although the Asian crisis had coincided with increased competition from Australian casinos and cruise ship operations in the region, there are tentative signs of recovery.
Burswood has actively been marketing to the Middle East, which will be boosted by a new Emirates Dubia airline arrival facility in Perth at the end of next year.
In other developments, Burswood still hopes to extend its 15-year exclusive WA casino license beyond its expiry December 24, 2000 and reduce the 16% flat tax rate on its international gaming profits.

High roller tilts Crown's profit
Melbourne's Crown Casino's full year trading results have been impacted by the Asian economic crisis, with reduced revenues in the international premium player business.
Crown became a fully owned subsidiary of Kerry Packer's Publishing and Broadcasting Limited on June 30, reducing Crown's net debt from $869.4 million in 1998 to $313.4 million.
The PBL prospectus for its $200 million debt issue revealed that Crown suffered a net loss of $142.6 million for the year ending June 1999, which is still a substantial improvement over 1998's $350.2 million loss. Operating profit before abnormals in the 1999 fiscal year period was $14.1 million.

Aristocrat surges ahead in sales

Aristocrat Leisure Industries has recorded an 83.4% jump in annual net profit to $51.7 million, the fifth consecutive year of earnings growth exceeding 25 per cent.
Chief Executive r Desmond Randall signalled more profit growth in the coming year, driven by a push into the international market and on-going cost savings. Revenue for the past fiscal year hit $546.2 million through a 29% increase in domestic sales and 65% increase in international sales.
The company hopes to announce the outcome of it's application for a gaming license in Nevada during the next year, and will become a fast follower of internet gambling if regulators around the world give it the go-ahead as a legitimate form of gaming.
"However, it will not replace the experience of a club or casino, and there are still many things to be sorted out from a regulatory
viewpoint." Meanwhile, Aristocrat has just launched its Japanese business next week, and hopes to secure a 2% share of the market over the next 5 years.

Supply Side

Melbourne company Twenty-Twice has developed a new casino system that allows high rollers to gamble in real time at casinos around the world from the privacy of their own home.
Unlike internet gambling, the JACK system applies ISDN conference call technology where images of card or wheel games are beamed across the world to a large conference screen. Players place bets using a touch screen and smartcard system, with bank-guaranteed transfers.
In addition, the product is restricted to the premium market and those considered VIP's or high rollers at casinos.
The company is currently marketing the product on a non-exclusive sale basis, with an option for a single casino to buy the world exclusive rights.

Consolidated Gaming Corporation has secured an internet sports betting license by the Northern Territory Government, and will relaunch Darwin-based SportsBet Australia in October. The company is currently completing its $1 million acquisition of SportsBet and will rename the company and offer online wagers via the internet, in addition to its existing telephone betting system .
CGC, headed by ex-AWA Manager Mr Bill North, has also made a $3 million placement to raise working capital for this new sportsbetting division.

New South Wales Gaming News

Skid on gaming growth
Victoria will cap poker machine levels at 27,500 until the year 2010 and prohibit a second casino, under the State's new gaming policy.
Premier Jeff Kennett also promised a review into thew placement of poker machines, particularly between city and country venues, hotels and clubs, and venue operators Tattersall's and Tabcorp.
Mr Kennett said that community consultation had clearly shown that Victorians did not want "further gaming opportunities."
The Coalition Government will also require a number of other amendments based on the recommendations outlined in the Productivity Commission report. For instance basic gaming machine information such as player return by game and odds will be provided to players via displays on each device, and advertising promoting poker machines or casino games will be abolished.

Keno backlash over more games
Charity and problem gambling organisations in South Australia have criticised a move to increase the hourly number of keno games.
The SA Lotteries Commission, who operates the game throughout the state, recently introduced a game every 3.5 minutes, or a maximum of 290 games a day over 17 hours. This is an increase of 85 games compared to the previous schedule of one game every five minutes. According to Chief Executive Ms June Roache, research indicated that keno players did not find the game exciting. "The change to a 3.5 minute time-frame for draws is the first stage in enhancing the game to deliver players with a greater level of entertainment," she said.
South Australians wagered more than $71 million playing keno during the 1997-1998 fiscal year, although sales have not matched other Australian states and territories.