NZ - $4m sale of Wharf Casino approved (bought by Lasseters Inc.)
$4m sale of Wharf Casino approved
WEDNESDAY, 13 DECEMBER 2006
By SUE FEA
The $4 million sale of Queenstown’s Wharf Casino to a Malaysian-owned casino company has been approved by the Internal Affairs Department.
The department announced its decision yesterday to approve the sale to Malaysian-owned Lasseters Incorporated, owners of Lasseters Hotel Casino in Alice Springs, Australia. Wharf Casino managing director Mike Stone said the department’s approval allowed the sales contract to become unconditional yesterday and the casino would change hands on January 31.
Lasseters had agreed to pay $1 for the casino company and pay off Wharf’s $4 million of debt - effectively a sale price of $4 million.
Mr Stone blamed the decision to allow two casino licences in a small town like Queenstown for his company losing $3 million in its first three years of operation, after the casino opened in the Steamer Wharf Building in 1999.
“We haven’t lost any money in the last four years but we haven’t made any either. We’re getting $3 million less than what we put into it,” he said. “Because there were two casinos it just wasn’t worthwhile – we were never going to have a chance to make any money. I could never understand why the other casino (Sky City Queenstown Casino) didn’t buy us out…,” Mr Stone said.
‘We haven’t lost any money in the last four years but we haven’t made any either.’ Wharf Casino managing director Mike Stone
The smaller Wharf Casino is privately owned by Mr Stone, American businessman Phil Griffith, Queenstown businessman Graham Smolenski and two minor American holdings.
The directors had hoped the boutique-style casino, which now employs 52 staff, would be profitable, with a 20 percent share of the profits being donated to the community through a charitable trust, a condition of both casino licences.
The owners had significant business interests globally, owning resorts, health spas and golf courses, as well as the Alice Springs casino, Mr Stone said.
“These guys do a tremendous job “ it’s somebody fresh and they can afford the investment (in the business),” he said.
Mr Stone said he understood all 52 jobs would be safe under the new owners.
