Tabcorp Holdings Ltd
(ASX:TAH) has unveiled plans to inject $625 million into three Queensland state casinos.
The gaming company’s investment represents over triple the $175 million figure that was first proposed in October.
Tabcorp says it has now signed deal to receive a package of concessions from the Queensland government.
The deal also includes boosting the amount of gaming machine licenses, though is still subject to a binding agreement between both parties and required approvals.
The Queensland investment follows Tabcorp’s $960 million redevelopment of Sydney’s Star City casino.
Tabcorp chairman John Story says these investments will make the casinos an attractive growth business following the proposed demerger from Tabcorp.
The proposed demeger is expected to take place in 2011.
Tabcorp Holdings generated a net profit of $469.5 million in the 2010 financial year.
