Second high-roller deal for Crown casino, by Michael Warner - Herald Sun - 16th May 2009

EXCLUSIVE: CROWN casino has hit the jackpot for the second time this week.

The state's gambling watchdog revealed it had given preliminary approval for Crown to expand its rich high-roller Mahogany Room.

It comes just days after Premier John Brumby announced the casino would be granted an extra 150 gaming tables in a sweetheart deal with its billionaire owner, James Packer.

The Mahogany Room expansion will see a new VIP facility built above the Crown Towers driveway at the casino's eastern end.

High-stakes roulette, blackjack and baccarat tables will cater for bets of up to $280,000.

And smoking will also be permitted under special international exemptions, despite the vast majority of patrons hailing from Victoria.

"We've told them (Crown) that, based on how they've described it to us, we see no impediment to it proceeding," Victorian Commission for Gambling Regulation chief Peter Cohen said.

"They've sought some boundary changes to the room."

Mr Cohen revealed sections of the casino's public gaming floors were also set to increase.

But a spokeswoman for Gaming Minister Tony Robinson said last night the two rulings were unrelated.

"I've just had a few more discussions, and my understanding is that all of this is at very preliminary stages between Crown and the VCGR. And so at this point, the minister has not been formally advised of any expansion of the Mahogany Room," Rebecca Harrison said.

Mr Brumby revealed on Tuesday - just hours before the handing down of the federal Budget - that he had handed Crown 150 new tables in exchange for higher tax on the casino's poker machines.

He defended the timing of the announcement and rejected criticism that he had tried to hide the deal.

But sources suggested the agreement was signed more than 10 days ago, and its announcement delayed until Budget day.

Mr Brumby admitted to private discussions with Mr Packer at a taxpayer-funded suite at the Albert Park Grand Prix six weeks ago.

He initially refused to detail the discussions, claiming they were private, but has since said they talked about Tiger Woods' visit to Melbourne in November and not the lucrative casino deal.

Mr Packer described the talks as "casual" and unrelated to the arrangement. (Credit: Herald Sun)

Greg Tingle comment

The Crown Casino - Victorian government deal looks to be a win - win (unless your in the minority and are an out of control gambling addict that doesn't know when to stop feeding the pokies or playing over your head at the tables). Crown Casino has further built its reputation as a world class casino and entertainment icon, and James Packer has further built upon his business reputation which looks to be a masterstroke. James Packer was in fine form at the Grand Prix... chats with Premier John Brumby, Sir Richard Branson and other switched on folks. This massive business deal has already achieved major state, national and international headlines so Victorian tourism and Australian tourism should benefit. Casino whales and big time holiday makers are known to do the Las Vegas strip, Macau (James Packer's working on his City of Dreams there also), and with the Crown Casino upgrades and extra money in the pockets of the Victorian government, Australia may see a boost in state and national tourism. World class entertainment acts are known to like to perform at top class venues and it sounds like Crown Casino is well prepared for them. Sydney's Star City Casino would be watching this space closely and the UFC is looking to have its first ever live event in Australia in approximately 1 year. Perhaps Network Nine, Foxtel of the like may look at doing a reality television or feature documentary based upon Crown Casino now the exciting news has been announced. You can bet Richard Branson's Virgin Airlines would have interest to fly in casino whales and big spending international holidaymakers to Crown. Then they would look at swinging by Macau's City of Dreams on the back, then the Kangaroo Route and give them a flutter on the Las Vegas Strip. Casinos have long been part of the state, national and international tourism (and big business) landscape. Crown Casino has been and continues to be pro active involved in getting the message out on "Bet with your head, not over it". Crown will be watching out for fake casino chips. They wouldn't want to get stung with a $12m dud check like their Sydney counterpart. There's an excellent chance that history will show this "sweet" deal between Crown Casino and the Victorian government to be one of the best things to happen to Australian tourism and the entertainment industry. This deal can also only help boost job prospects and will put some cash into the economy. In the meantime the publicity has helped people further realize not to over do it at the casino and bet within their limits. The world awaits James Packer's next big deal... he's sure jumped out of any shadow that may have been there. Packer - business comeback of the year!

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