Burswood strikes deal to expand casino

Burswood Entertainment Complex and the state government have done a deal to expand the gaming capacity of the casino, paving the way for a $350 million makeover of the resort.

Burswood said it has received in-principle support from the government to expand the casino building allowing it to add an extra 350 electronic gaming machines and 50 extra gaming tables.

In return Burswood has agreed to pay a $20 million up front fee.

It has also agreed that the tax rate on the additional electronic gaming machines will progressively increase from 22 per cent to 27 per cent over five years.

Racing and Gaming Minister Terry Waldron said the development would create a more diverse entertainment complex and the $20 million would be an immediate boost to the state.

"While this Government will not support the introduction of poker machines into Western Australia, it will not stand in the way of the Gaming and Wagering Commission deciding on the application for more gaming capacity at the casino," the Minister said.

"Burswood is a major tourism drawcard in the region and the addition of a Rockpool Bar and Grill, a premium Japanese restaurant and the complete refurbishment of the InterContinental Perth Burswood Hotel amongst a host of major capital expenditure will only strengthen that."

Mr Waldron said BEC is seeking approval from the commission for an additional 250 gaming machines and 50 gaming tables.

"If approved this will take the total number of machines and tables at BEC to 2000 and 220 respectively," he said.

"The rate of tax and levies paid by BEC on those new machines will rise from 22 to 27 per cent over five years.

"WA will still retain its position as having by far the lowest concentration of gaming machines per capita in Australia at approximately 10 times less than the national average."

The Minister said the Government would also boost problem gambling support services by allocating an initial $2million with a further $500,000 each year from tax revenue increases.

The $350 million investment is over 3 years and the company said it will expand, improve and maintain the resort.

The changes are expected to create more than 450 new jobs and provide work for 400 workers during the construction phase.

"Together with the $130 million of capital expenditure we have made over the previous two years, today's announcement means that Burswood will now be investing almost half a billion dollars over a five year period," said Burswood's chief executive officer Barry Felstead.

He said the investment will bring great benefits to Perth and WA.

"These benefits include increased levels of employment, world-class training opportunities, an increase in interstate and overseas tourist visitation and associated on-spend and more conference delegates," Mr Felstead said.

See full statement from Burswood below:

Investment of $350 million will create 450 new jobs and consolidate Burswood's position
as a world-class integrated resort.
Burswood Entertainment Complex announced today that it will undertake $350 million of capital expenditure over the next 36 months in order to expand, improve and maintain the resort.

The investment will create more than 450 new jobs within the Complex and further consolidate Burswood's position as the State's largest single site employer. In addition, the construction program will employ more than 400 workers in associated trades. Specifically, the investment will enhance Burswood's accommodation, entertainment, leisure, dining, local gaming and premium player facilities. This will result in a strengthening of Burswood's position as a world-class integrated resort. Other competing luxurious integrated resorts have recently opened in both Macau and Singapore.

Burswood's Chief Executive Officer, Mr Barry Felstead, said,

"Together with the $130 million of capital expenditure we have made over the previous two years, today's announcement means that Burswood will now be investing almost half a billion dollars over a five year period. This will result in Perth and Western Australia having a world-class integrated resort that can successfully compete in the Asian region."

"The investment will bring significant and sustained benefits to Perth and Western Australia. These benefits include increased levels of employment, world-class training opportunities, an increase in interstate and overseas tourist visitation and associated on-spend and more conference delegates," Mr Felstead added.

Burswood has received in-principle Government support to expand the existing casino building in order to accommodate an increase in gaming product. This increase in gaming product will consist of an additional 250 electronic gaming machines and 50 extra gaming tables. This expansion will greatly alleviate overcrowding on the gaming floor during peak periods. In return for the extra gaming product, Burswood has agreed with the Government to pay a $20 million up front fee and has agreed that the tax rate on the additional electronic gaming machines will progressively increase from 22% to 27% over five years. Burswood will now seek the necessary approvals of the Gaming and Wagering Commission for the additional gaming product and expansion of the casino facilities.

The investment in enhancing Burswood's facilities will entail:
- Completion of the full upgrade of all rooms at InterContinental Perth Burswood along with creating luxurious new pool and resort facilities. The end product will deliver Perth's best hotel that will offer international standard five star accommodation.
- The construction of Rockpool Bar & Grill, a renowned restaurant brand, to be opened by Neil Perry at Burswood in early 2011.
- Two luxury villas to be constructed in the hotel grounds for international premium players featuring magnificent views of the Swan River and the City.
- An expansion of the existing casino building to accommodate the new gaming product and new restaurant and bar facilities on the expanded main gaming floor.
- A new private gaming salon to be constructed on the roof of InterContinental Perth Burswood allowing international premium players the opportunity to play against the dramatic backdrop of the Perth City skyline and the Swan River. When completed the salon will be amongst the best in the world with its unique setting and outlook.
- New premium Japanese and Italian restaurants will be constructed to further add to the existing suite of dining options at Burswood. A new food court will be constructed and a contemporary buffet restaurant and bar will open in the lobby area of the hotel.
- The purchase of a 40 metre luxury motor yacht which will enable international customers and their families to enjoy the natural beauty of the Swan River, Rottnest Island and the Western Australian coast line. This will be a unique asset compared to other integrated resorts in the Asian region.
- An improvement to car parking facilities in order to address the lack of on-site parking during peak periods. Subject to Government approval, Burswood intends to construct a 1,000 bay multi-deck car-park.