The sale of Casino Canberra has fallen through, casting a cloud over the venue's immediate future.
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Aquis Entertainment Limited on Wednesday announced a long-awaited deal to transfer ownership of the casino to Blue Whale Entertainment had been terminated.
The deal had been contingent on Blue Whale obtaining approvals from the ACT Gambling and Racing Commission before December 21, which it failed to do.
The ACT government said Blue Whale had not provided it with the "required information". to complete the assessment.
In a statement to the Australian Stock Exchange, Aquis said it had attempted to extend the deadline for the deal to be completed, but an agreement could not be reached.
Aquis said the business remained viable, cash positive and the "board looked forward to seeing further improvements in the future".
The statement said following the deal's collapse, the board would revise their company's plans to ensure it continued to grow. This would include "consideration of any new businesses opportunities which may arise", the statement read.
The Canberra Times has sought further comment from Aquis Entertainment Limited chief executive Allison Gallaugher.
Blue Whale owner Michael Gu, through his company iProsperity, has also been contacted for comment.
The sale's collapse is the latest chapter in the casino's challenging recent past.
Blue Whale unveiled plans in December 2018 to buy the casino, in a complicated transaction that would see it become the majority shareholder in the companies that own and operate the venue, Aquis Entertainment Limited and Casino Canberra Limited.
The announcement came less than a fortnight after the ACT government knocked back Aquis' controversial, unsolicited proposal to redevelop the casino precinct with luxury hotels, high-end shopping outlets, bars, cafes and a convention centre.
At the time, then Casino Canberra boss Jessica Mellor said new gambling laws and government decisions "not to make certain land available" had made it difficult to progress the proposal.
The casino had wanted permission to operate 500 poker machines as part of the deal to revitalise the precinct.
But laws passed in the ACT Legislative Assembly in late 2017 limited that number to 200 machines, along with 60 fully-automated table games. Punters would also be limited to $2 spins, and would be forced to nominate how much money they were prepared to lose in advance.
Ms Mellor never specified which parcel of land the government had withheld.
The casino's original expansion plan did include redeveloping a parcel of land in Glebe Park, which the government bought in controversial circumstances in September 2015. The land sale has been referred to the the ACT's Integrity Commission for investigation.
The Canberra Times in June reported the casino's current owners had contacted the ACT government wishing to re-start talks about an expansion, with Ms Gallaugher saying the group was committed to pursuing the upgrade.
Blue Whale also spruiked interest in upgrading the casino once the sale was approved.
Under ACT gaming laws, anyone who wants to buy the casino must undergo a probity assessment before the minister will approve the sale. In the case of a corporation, that assessment extends to each executive officer and influential person within the entity.
The Canberra Times contacted ACT gaming minister Gordon Ramsay for comment on the probity assessment.
In a statement, an ACT government spokesman said Blue Whale had not provided the commission with the "required information" and, as result, the assessment was not completed.
"The proposed agreement and the subsequent decision not to proceed by the parties were commercial decisions, independent of government and the commission," the spokesman said.
The casino has struggled financially in recent years, posting a $2.5 million loss in its latest half-yearly report.
Its challenges were laid bare in an Aquis-commissioned report in 2019, which noted Casino Canberra had one of the smallest gambling turnovers in the country and was the only Australian casino not allowed to operate poker machines.
It was not known what ultimately caused the deal to fall through.
Opposition gaming spokesman Mark Parton pinned some of the blame on the government.
"Every single interaction from the government in the casino space has been a complete failure," Mr Parton said.
"Whether it be a sale of the casino, legislative changes or redevelopment plans, the Barr government has sought to slow down the process at every turn.
"These are all things a prospective buyer would be aware of and [Chief Minister] Andrew Barr and Mr Ramsay should take their share of responsibility for being unable to deliver any proposed project on time."
Greens leader Shane Rattenbury, who struck the deal with Labor to only allow 200 poker machines in any redeveloped casino, had little sympathy for the casino or Blue Whale.
"If Casino Canberra or Blue Whale's business model relies on having more than 200 poker machines to survive, then this is not a business model that we want to welcome in Canberra," he said.
"Pokies are addictive and manipulative and are designed that way so that people lose money."
More to come