Echo Entertainment Group Ltd has been under a dark cloud of late, all thanks to Crown Casino and their move to get approval for a second Sydney casino that took away the opportunity from Echo Entertainment.
Echo Entertainment Big Money
Now this possible luxury Sydney casino is not on the cards for Echo Entertainment, the question is what are they going to do next? Well we have heard that they are making a $1.4 billion bet to try and compete with Crown Casino, the question is whether this is a costly bet that will backfire, or its a valuable way of keeping Crown Casino on their toes.
On Friday 8th November, Friday just gone, Echo Entertainment launched a big plan to spend $1.4 billion on its Queensland casino business. This move was to combat Crown Casinos monopoly on Sydney.
The two casinos that will get to enjoy this massive spend are Jupiters Hotel and Casino on the Gold Coast and the Treasury Casino in Brisbane. With this investment it looks like both casinos will be launched into brand new, heavenly places to visit, in fact they will look so different from how they do now.
John Redmond, CEO of Echo said that this was an “opportunity to transform our properties in Queensland into world class integrated resorts capable of competing with the best of region.”
People think Echo Entertainment is wrong
Whilst the news was supposed to make people sit up and take note of its intentions, many feel the move is actually a costly mistake, hence our view of it being a gamble.
The view that this is a costly mistake is actually something the shareholders and those in business circles actually agree with. We know this because shares tumbled after the news was made public.