Tabcorp to spend us$ 616 million on Queensland Casinos

Tabcorp boosted the investment from us$ 172.3 million after signing an agreement with the Queensland government on a package of concessions, the Melbourne-based company said in an e-mailed statement this week. The plan must gain regulatory approval.

The Queensland spending, which follows us$ 846 million refurbishment of Star City in Sydney, is expected to boost revenue and “improve the growth prospects of the casinos,” the company said. Australians gamble more than us$ 16.7 billion a year, or about us$ 1,106 a person, according to the Queensland state government’s Office of Economic and Statistical Research.

Tabcorp plans to separate its casinos from its betting shops in a spinoff that’s due to be completed in July 2011, the company said in October. Tabcorp declined 0.3 % yesterday in Sydney, valuing the company at us$ 4.6 billion.

Queensland will allocate 500 poker machines for the Gold Coast and Brisbane casinos, the state government said in a separate statement. Those will come from the existing, unallocated pool of licenses, “so there will be no increase overall in poker machines in Queensland,” the government said.

Queensland, starting in July 2012, plans to adjust the current tax rates - including lowering the hotel tax rate to 35 % from 35.91 % and reducing the rate for clubs to 35 %- so that the total revenue generated from gaming machines won’t increase, the government said.

About 3,000 construction jobs will be created and another 1,400 jobs may be formed when it’s finished, the state said. The investment also would add hotel rooms for international and local tourists if a bid for the 2018 Commonwealth Games succeeds, Queensland’s Premier Anna Bligh said in a statement.