In 1973, the first casino in Australia opened its doors at West Point in Hobart, Tasmania. This small and British club-style casino’s main aim was to draw local and international tourists and their money in order to increase economic development. Sudden success, it gave the birth to Australia’s casino industry, which has boomed in the decades since. The first casino has shaped Tasmania’s tourism landscape and played the key role in creating the concept of the gaming industry, leading to the mushrooming of casinos.
The second boom of casino development in Australia in the mid-1980s and early 1990s also aimed to promote tourism and increase regional economic development. These new casino developments were different from their predecessors in the Northern Territory. The second “wave” of casinos moved away from British style casino prototype to American style glitter casinos with new locations in large urban centers.
The mid-1990s saw the economic recession including declines in the manufacturing sector. In the mid-1990s, new gigantic casino venues modeled on Las Vegas casinos were built in the largest urban centers of Sydney, Melbourne, and Brisbane in order to boost the economy and draw tourists to Australia. The recognition of growing number of integrated entertainment venues with stylish casinos marked the third boom of casino development in Australia.
Thirteen casinos are now legally operating in Australia and comply with the Act of Parliament. In addition to this, each state and territory has a gaming authority. Most of these casinos are part of huge entertainment complexes, featuring luxury hotels, fine dining restaurants, endless shopping facilities and other entertainment venues such as theaters, cinemas and more.
What is between casinos and economy?
The simplest answer is money. However, the industry of casinos and its effect on Australia’s economy is more complex. What hides behind the casino industry?
Australian casino industry takes pride in being one of the most popular tourists’ attractions in Australia, drawing a huge number of tourists and their money each year. To add more, it is widely believed that these tourists would not have visited the country of koalas and would have spent their money more conservatively during their visit if there were no casinos! The key factor of all casinos is the desire to increase the economy. But is it all true? Who takes away the largest piece of the pie in terms of profit?
The casino industry provides a significant boost to the country’s economy. More than 1 million international tourists visit Australia’s casinos each year and spend around A$5 billion during their visits.
Did you know that international tourists who do not go to the casinos spend considerably less money than those who visit casinos? If a non-gambler spends around $2600 during the visit, the average expenditure per tourist, who also visits online casino nz during the stay, is around $4900!
In 2002-03, operating casinos in Australia generated gross revenue of over 3.1 billion, while in 2009-10, it increased to over $4.4 billion. In 2011-12, the gambling taxes amounted to $5.5 billion. The facts speak for themselves expressively.
Benefits of Australian casino industry
Australia’s economy mainly benefits from the gaming taxes and licensing revenues. Casinos in Australia are among the highest taxed industries!
The newly built casinos also play a key role in the regeneration of previously run-down urban environments.
Its positive effects also cover the increases in earned incomes and employment opportunities, improvement of social welfare, stimulation of other industries such as restaurants, stores, and hotels.
Being integrated entertainment venues, casinos are also major employers with over 25.000 people working in the gambling industry throughout the country.
If things get right, casino developments can attract international investments, enhance urban environments, provide training opportunities as well as generate employment and significant returns to the local economy.
The future of the gambling industry in Australia
It is expected that the opening of three new casinos in the next five years at Barangaroo on Sydney Harbour and Queensland, intended to attract mainly wealthy VIP and international high rollers, will drive revenue in casinos to $6.2 billion by 2020.
The fact that Singapore has become an established market and one of the most favorite casino destinations means Australia will face a strong competition in luring wealthy spenders.
When it comes to the positive outcomes of casinos, no one can argue with the unprecedented success of casinos and their economic benefits. But casinos have negative effects too.
Get the things wrong and casinos can cause numerous problems, including economic distress, increasing goods prices, domestic violence, negative impact on family stability, etc.