Caesars Entertainment Corporation, a major player in the casino industry headquartered in Paradise, Nevada recently inked an agreement with the investment firm ASF Consortium. The agreement would see Chinese-backed ASF operate the casino division of Caesars’s $3 billion resort on the Gold Coast of Australia.
Per the Aussie local news venue The Australian, the deal allows both parties to begin their due diligence procedures as well as discussing the commercial terms surrounding operating a casino resort on the property at a later time.
Caesars officials made a visit to the Gold Coast in July 2017. It’s thought that they completed the initial bevy of assessments of the market opportunities in the area.
Steven Tight, President of International Development for Caesars, did not provide a statement on what Tight called speculations. Tight further went on to say that Caesars is looking into the possibility of working with ASF in some capacity. It seems apparent that Caesars has enough interest in the prospect to move forward with it.
ASF Consortium, a Chinese private equity company, has been selected by the government of Queensland as the preferred bidder for a casino resort development project that began in 2013. The project has encountered a number of obstacles since then, including financial concerns and delays. ASF’s reputed involvement with the government of China has been a cause of some concern.
A $7.5 billion casino resort project was originally planned for Wavebreak Island, an artificially created island, in 2015. However, the project had to be abandoned due to environmental concerns. Developers settled instead on the $3 billion project, located in the Gold Coast resort area known as Southport Spit.
In spite of all the pitfalls encountered in the previous year, Caesars Entertainment Corporation has been able to confirm that it continues to have expansion plans. These plans include expanding into Brazil, Canada, Japan, and South Korea as well as Australia’s Gold Coast.
Queensland government officials recently closed public discussion on the Gold Coast project and expect to confirm their finding in the following weeks. Both the Queensland government and the local community must approve the project before any development labor can launch.
Louis Chien, Director of ASF Group, said in a statement to The Australian that the state government of Queensland was currently responsible for backing the project and defining the parameters for it to go forward. Chien said a casino operator partner would be selected as part of a highly detailed project proposal.
The ASF Group director also requested that the Queensland government further clarify its position regarding the project. Chien added that investors and other people involved were waiting for the project to commence once clarification from the government came through.
Caesars Entertainment Company was known as Harrah’s Entertainment until 2010. William F. Harrah founded the company in 1937. The Harrah’s name is still used under the banner of the Caesars gaming and hotel corporation.