NEVER BUILT SYDNEY: Harrah's Sydney Casino Proposal (1986)

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. 

Details about the towers and facilities were not published at the time and were based on observations in the photos of the model published in the media.

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. 

1995: Sydney Harbour Casino opens

Yesterday marked  25 years since the opening of the first casino in Sydney - Sydney Harbour Casino. It would act as a temporary casino until Star City Casino (renamed The Star) opened in 1997.

It was opened by (Acting) Prime Minister Kim Beazley on September 13 1995.

The location was almost directly opposite the current site of The Star - Wharves 12 & 13 at Darling Wharf which is currently home to office and apartment blocks.

Below is coverage from its opening night (and morning). 14 000 punters had visited within hours of the doors opening to the public.

Below are two advertisements relating to its opening - both were full page advertisements. The first advertisement was published in The Daily Telegraph Mirror on September 13 1995 with the second advertisement published in the same newspaper on September 16 1995. The second advertisement promoted transport options for patrons.

Mike Gibson wrote a good review of the Casino for The Daily Telegraph Mirror. 

Source: Gibson, M. 1995. "Brave new world at Pyrmont". The Daily Telegraph Mirror, September 15: 10.

Below is coverage prior to the opening that evening (The Daily Telegraph Mirror - September 13 1995).

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NEVER BUILT SYDNEY: Donald Trump and Sydney's proposed casino (1986) - NEW FINDINGS

Last year, I shared some material relating to a proposal by Donald Trump to construct a casino resort complex on the eastern side of Cockle Bay at Darling Harbour.

This week, NSW Cabinet papers from 1987 were made to the public. In addition, The Australian last month had revealed information relating to how the Unsworth Government (1986-1988) handled his proposal to build a casino resort and will provide a short summary of the material.

Above: Donald Trump's Casino Resort proposal for Darling Harbour (1986).

We now have a model of what Trump's resort would have looked like which was published in The Australian on Friday. As I mentioned, Harry Seidler was commissioned as the architect by Trump. The hotel tower reminds me of Shell House in Melbourne.

Sydney was being promised something special. It would look quite dated by today's standards and perhaps a redevelopment might have been in order.

Last year, I referred to a report from The Sydney Morning Herald from May 1987. Trump had tried to evade police checks required for operators of casinos in NSW. Cabinet Minutes show that while the concept had "public appeal", a NSW Police Board Report had suggested that Trump had links to the Mafia. Financial viability was also identified as a concern by CIBC Australia.

While the Darling Harbour Redevelopment Authority and the Casino Operations Board were satisified with the Trump proposal, it (along with three other proposed schemes) were rejected by Cabinet.

1986: Donald Trump and Sydney's proposed casino

Darling Park could have been home to Donald Trump's Hotel and Casino Resort. Photo was taken by the Author.

Donald Trump has been elected in the past week as the President of the United States, succeeding Barack Obama.

And it just happened in this past week, I came across a 1990 clipping from The Daily Telegraph where the man himself revealed plans to build one of his famous casino resorts here in Sydney, and that led me to finding out a little more his plans.

His unsuccessful quest to build a casino in Sydney dates back to 1986 when Barrie Unsworth was the Premier of NSW.

The proposed location was not where The Star casino is located. It was planned for Darling Harbour on the current site of the Darling Park office complex and Cockle Bay Wharf.

On November 10, 1986, Trump's intentions to seek a casino licence were reported in The Sydney Morning Herald. 

The hotel and casino complex would be designed by architect Harry Seidler, who would be flown to view his casino's in Atlantic City, New Jersey to guide him in creating the design.

Trump's position was:

Sydney's a wonderful city. and if properly done, this could be a tremendous success for Sydney and everyone involved.  It's a great concept, if it's well executed.

He did face competition with up to a fifteen tenders involved and was shortlisted as one of five tenders in December 1986. In May 1987, Trump had been eliminated with Genting and Civil & Civic the only contractor remaining. They also would eventually be dropped.

Like the scrutiny with James Packer & Crown Resorts in terms of police and government checks with his project at Barangaroo, Trump appeared to try to advert these checks as reported by The Sydney Morning Herald in May 1987. Think about his reluctance to give details as part of his presidential campaign relating to his business dealings.

Source: McLean, P. 1990. "Trump bid on cards for casino". The Daily Telegraph, January 10, 7. 

Trump continued his campaign for several years and it bubbled back to the surface in 1990. He told The Sun Herald on April 22, he said Sydney would have one of the world's greatest casino's. Another interesting comparison with James Packer who wants Sydney to have the world's greatest casino. He did feel that the State Government wasn't interested.

We probably lost an opportunity from the same ineptness from our politicians that Trump seems to believe is plaguing politicians in his home country. If you look at the history of his "empire" of three casinos, they were doomed to fail. His third casino Trump Taj Mahal opened in 1990 in  Atlantic City. Upon opening it was the world's biggest casino. Struggling to pay debts, the casinos were floated on the American Stock Market as Trump Hotels and Casino Resorts in June 1995.

Financial problems continued to plague the Casino's with Trump in charge and the company declared bankruptcy in 2004. It is believed that Trump moved away from the company in 2006 and still battled with threats of bankruptcy for the next decade. It was not helped by the Global Financial Crisis of 2008-09

Two of his Atlantic City casino's no longer exist Trump Plaza closed in 2014, Trump Taj Mahal closed this year. However, his third casino in Atlantic City - Trump Marina was sold and is now a second incarnation of the Golden Nugget Atlantic City Brand.

So if Sydney did have a Trump Hotel & Casino, it would still be around.

It's obvious that the State Government would not want a casino to close. It might have meant a change in management at worst to keep it going.

Sydney is a major international city and a popular tourist destination for international tourists. Atlantic City has had competition from Las Vegas and closer to home in the United States, the rise of gambling in New York, Pennsylvania and Maryland and preference for air travel.

As for location, it would have been located as mentioned on the current site of the Darling Park complex and Cockle Bay Wharf.

But even if Trump Sydney was turning over a profit, it may have had to subsidise the operations in Atlantic City and service the debt. It may have not even been enough to save them.

Had Trump been put in a position to sell, it would probably have been too late for Crown to buy the casino with preparations for his Barangaroo Casino Resort well advanced in 2014.

Then again its only predictions.

1997: Star City Opens

Wednesday (November 26) will be 17 years to the day since Sydney's first permanent casino opened. Star City (rebranded The Star back in 2011) opened its doors to the masses. It replaced the temporary Sydney Harbour Casino which had opened in September 1995, built at a cost of $876 million.

There was a glitzy advertisement which I remember quite well. It was no Crown Casino but they were trying at least and at the same time obviously showcase its harbour setting.

The opening itself was glitzy with a free public concert featuring Diana Ross, Human Nature and Richard Clapton fireworks display and light show. Inside there was an invite only opening party involving Sydney's A-List with Tom Jones and Michael Crawford joining the celebrations alongside those performing for the public. In the first night 24 hours of trading, around 45 000 people visited the casino according to The Daily Telegraph (November 28 1997).

The Daily Telegraph marked the opening by selling their November 28 editions for just ten cents. A special wrap around was produced featuring Diana Ross with the casino in the background.

Two pages of coverage from the November 27, 1997 edition of The Daily Telegraph.

NEVER BUILT SYDNEY: Early concept for Sydney's Casino (1993)

Ever wondered what other concepts were out there relating to The Star during the planning phases in the 1990s? Here is one that looks drab and in the 2010s would become quite dated.

We as Sydneysiders may be cringed by the three towers that make up The Star, but compared to this, its more conservative.

Source: Wilkins, M. 1993. "Our beautiful city in the year 2000: New-look Sydney gears up for the games." The Sunday Telegraph: 54 & 105.