An independent review of the proposed Jewel casino development by La Trobe University accounting academic Larry O’Connor, should be of great concern to Mildura people.
Member for Mildura Peter Crisp says Mr O’Connor’s finding that a $400 million development is “fundamentally unviable” even under the most favourable of scenarios is alarming when contrasted with the hype surrounding the proposal.
“This review by a person with no vested interests finds that a stand-alone casino development has the potential to be viable, but casino proponents have always talked up the development in Mildura as a $400 million entertainment complex,” says Peter Crisp.
Even more alarming is the finding that a number of community-owned clubs in Mildura would be bankrupt within 12 months of a casino opening its doors.
Backing up this conclusion, Mr O’Connor has produced casino industry data that shows more than 84% of casino patrons come from the local geographic region in which the casino is located. A casino in Mildura would siphon customers from existing community-owned clubs, as all venues would be depending on significant revenue from poker machines.
Mr O’Connor’s data also shows that casinos draw 80% of their income from gaming activities, with the rest coming from accommodation, restaurants and the like.
With the local region providing more than 80% of customers and 80% of income, community-owned clubs could not survive the competition presented by the glitz and promotion of professional casino operators.
The local community would be the loser. Community-owned clubs are long-standing and generous supporters of community activities and events, distributing thousands of dollars every year to deserving causes.
Peter Crisp says the O’Connor report fills a gap in the casino debate.
“Promotional material is the only information that’s ever been disclosed to the public, despite requests for details on costs, timelines, social and community impacts.”
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