Sourced from: Dale, D. & Shanahan, D. 1986. "Sydney Casino: FBI checks US partner". The Sydney Morning Herald, July 2: 1.
For the first time in two years, Never Built Sydney is back for another series, as I look at more of the "never builts" that were proposed for Sydney.
As part of the redevelopment of Darling Harbour in the 1980s, the Wran and Unsworth Governments sought to develop the eastern side of Cockle Bay into a Casino and Hotel complex. This was also a solution to rid the city of illegal gambling houses.
The site in question is currently the site of the Darling Park complex, comprising three office towers and the Cockle Bay Wharf dining precinct.
Sourced from: Holland, M. & Ringrose, D. 1986. "Casino deal 'cannot be scrapped'". The Daily Telegraph, August 12: 1 & 2.
In 1985, the Wran Government put the site up for tender. American casino operator Harrah's (owned by hotel chain Holiday Inn) in conjunction with Hooker Corporation was awarded the contract on June 24, 1986. Their proposal for the Casino Resort would comprise two buildings: one rising atop the Western Distributor and fronting Cockle Bay to around 11/12 storeys tall, which would feature the casino, while a 45-level hotel tower would be built towards the corner of Druitt and Sussex Street.
Sourced from: Ringrose, D. 1986. "Hooker vows: We'll fight for casino". The Daily Telegraph, August 13: 1 & 2.
Why did it not proceed?
Source: Dale, D. & Shanahan, D. 1986. "Sydney Casino: FBI checks US partner". The Sydney Morning Herald, July 2: 1.
The process required tenders (and individuals involved) to pass an "integrity check, " equivalent to a police check on an individual who may be considered for employment within a company. The Sydney Morning Herald in July 1986 revealed that Harrah's was under investigation by the FBI in the United States and the New Jersey Division of Gaming Enforcement over a claim that "it used organised crime figures to arrange deals with a union". This had not been uncovered during the initial integrity checks.
Source: Dale, D. 1986. "Questions Atlantic City wasn't asked". The Sydney Morning Herald, July 2: 1 & 4.
The New Jersey Division of Gaming Enforcement responded that the NSW Government had not approached them.
Source: Holland, M. & Ringrose, D. 1986. "Casino deal 'cannot be scrapped'". The Daily Telegraph, August 12: 1 & 2.
The revelation led to the State Government cancelling the contract on August 12 1986. Harrah's and Hooker took the government to the NSW Supreme Court claiming that the government were obligated to comply with the agreement. It would be settled out of court in 1989 with the NSW Government paying the consortium $33 million in compensation plus $5 million in court costs, a fraction of the $700 million initially demanded.
Source: Ringrose, D. 1986. "Hooker vows: We'll fight for casino". The Daily Telegraph, August 13: 1 & 2.
New tenders were sought later that year and continued into 1987, but integrity checks saw all tenders rejected. Harrah's and Hooker tried again, but were unsuccessful. By the end of 1987, the Unsworth Government attempted a third round of tenders.
In 1988, the Unsworth Government was replaced by a Coalition Government under Nick Greiner. With $500 million still owing on the cost of the Darling Harbour Redevelopment, the NSW Government shifted in 1989 towards a mixed-use development of the site with a hotel, offices, and retail buildings to be built. In 1991, Darling Park was conceived, with towers built in three stages—1992, 1999, and 2005—with Cockle Bay Wharf constructed in 1998. The proposed hotel tower did not proceed.