James Packer bets big on luring Chinese gamblers to Sydney casinos

The success of Australian tycoon James Packer's new six-star Sydney casino hinges on whether he can lure enough rich Chinese gamblers to justify its A$1.4 billion (HK$10 billion) price tag.

Doing so will require convincing China's high-rollers - who now make up an estimated 75 per cent of the global VIP gaming market - to reject more practical or more famous 24-hour gambling destinations like Macau and Las Vegas in favour of a far-off destination better known for sightseeing.

To improve his odds, Packer is leaning heavily on his company's established casino presence in Macau, where Crown holds a minority interest in Melco Crown Entertainment, which operates several casinos in the enclave.

Crown already maintains an office in Hong Kong, from which it arranges lavish tours for gamblers who commit to wagering a minimum of A$10,000.

The plan will also get a boost from the Australian government. The Australian Department of Immigration has begun offering a streamlined visa process for Chinese citizens seeking to try their luck at the country's casinos.

Packer is so confident of his ability to generate massive profits from the casino that he has accepted an unusually high tax rate on gaming revenues set by the government. He aims to increase Australia's share of the Asian VIP gambling business to 4 per cent, up from 2.5 per cent now.