Echo Entertainment Group Limited
(ASX:EGP) chief executive officer John Redmond has pledged $1 billion to develop The Star in light of Crown’s Limited
(ASX:CWN) proposed new casino, according to media reports.
The rivals are both lobbying the NSW government over Echo's casino licence monopoly in the state, with Mr Packer proposing a $1 billion six-star hotel and casino at Barangaroo to compete with Echo's The Star.
Mr Redmond has described Crown’s plans as a casino on steroids and says any new investments will be upwards of $1 billion and will deliver a return.
Crown last month offloaded its 10 per cent stake in Echo, pushing shares as low as $2.99, Echo's lowest point since listing on the ASX.
Echo operates The Star in Sydney under the only casino licence in the city.
Echo generated a net profit of $66.5 million in the first half of the current financial year.
