Proposed Legislation Changes to Gaming in NSW
Changes to Gaming in NSW
The announcement today by the NSW Government could mean that some hotels will increase in value, and some will be frozen or lose value.
I have long championed the call for Poker Machine Entitlements to be able to be leased to other hotels.
Hotels with 10 or less PME's are proposed to have the opportunity to lease entitlements to other hotels, creating a further revenue scheme without selling off their "Crown Jewels".
It will be interesting to see how the market determines a rental or premium payment for this to occur … watch this space.
The change in Bands will effect some hotel values.
For some … they may lose value as they move to a higher band, For others they may be receive a comparative advantage by being able to add gaming when their close neighbours are restricted.
The proposed legislation encourages poor operators to divest of gaming if they have 6 or less PME's - they can sell without forfeiture,
All country hotels are proposed to be able to sell 2 blocks to the city each year - not the one block currently legislated.
All this is legislation introduced to Parliament today and expected to be passed in the next month.
The proof will be in the fine print of the final legislation.
Please contact me for a more specific opinion regarding the effects on your hotel. There is little doubt this will have an influence on market values.
