The casino's new owners, Hong Kong-based Aquis Entertainment, wants to redevelop the tired building with new gaming areas and resort-style entertainment, dining and retail precincts.

Aquis says the plan could bring as many as 750,000 extra visitors to Canberra a year, including high-end Chinese gamblers. It could deliver more than 400 ongoing jobs and as much as $60 million a year in additional tax revenue.

Mr Barr said any change to the government's policy of only allowing poker machines in clubs would take months or years to be completed, but he welcomed the proposal as part of the unsolicited proposal to the government.

The company had indicated to the government it wanted to join the trading scheme for poker machines when it took over the casino in December 2014.

The poker machine ban is not "set in stone for the rest of eternity" but Mr Barr said a powerful argument would be needed for any change to the rules. He agreed any change to the poker machine ban would be a significant shift, and could see opposition from the clubs sector.

"It's a significant issue that will need to be worked through," Mr Barr said. "That's why I'm not making an announcement one way or another today.

"Canberra is growing up;our city is changing and our economy is much bigger. There's no change in government policy at this point but nor am I signalling a blanket 'no, we won't even consider what has been put forward.'

He said questions about the ban had become a rite of passage for government ministers and casino operators.

"I would be surprised if the clubs industry didn't have a particular view," Mr Barr said.

Two new hotels would be built on the casino site. One, a six-star, 12-storey tower, would target high-rollers and wealthy tourists. The second would be a 100-suite, five-star hotel extending to 15 storeys. New bars, cafes and restaurants and promenade-style shopping would be built.

The new lobby would face Glebe Park and the developer will seek to build a new road in from Coranderrk Street, which it would also finance.

Opposition gaming and racing spokesman Brendan Smyth would not say if he believed the casino should be allowed to have poker machines.

"This is a very complex proposal with many interlocked components," Mr Smyth said.

"It will obviously have many ramifications for the city and needs to be carefully considered. We'll be looking closely at the detail."

Jeremy Lasek has lived in the neighbouring Glebe Park Residences for six years.

He said that although it was early days, the casino's new owners had so far listened, and promised to respond to, community concerns about the development.

"There is a certain level of excitement but also some nervousness and concern about traffic in the area," Mr Lasek said. "But I think there was a lot of good will shown by the new casino owners, and a lot of openness."

"All of us would like to see what is a quiet, almost forgotten, part of the city enlivened, but it's all about striking the right balance."

The project would require a two-year build time and could open by 2018.