for early access to the latest igaming videos!
and get the latest igaming news first!
Australia’s Reef Casino Trust (RCT) reported a 6.4 percent increase in net profit to AU$5.41 million ($3.82 million) for 2025, as plans for its acquisition by property investor Iris continue to progress. The company’s revenue also increased by 4.8 percent to AU$26.74 million ($18.88 million), led by rental income from the Reef Hotel Casino of AU$25.52 million ($18.02 million).
Strong Rental Income Offsets Costs
Most revenue flowed from Reef Hotel Casino rents, countering levy hikes and compliance spends. RCT Chair Wendy Morris flagged a tough operating climate and intense regulatory watch, but noted international tourism nearing pre-pandemic marks, albeit with fewer Chinese arrivals. Cairns saw buoyant high season, with locals and domestic visitors holding steady. Cruise traffic grew, airline seats expanded, and business events booked solid.
CEO Brad Seahon highlighted second-half strength, crediting local and interstate support for tables. Visitation rose 2.5 percent year-on-year, electronic gaming revenue 2.9 percent; RCT’s top rental driver. Table gaming jumped 13.6 percent on higher drop and win rates, even with fewer premium players.
Takeover Bid Set for Extension
Iris’s off-market bid for RCT, sweetened to AU$3.87 ($2.52) per unit from AU$3.72 ($2.42), values the trust at AU$192.7 million ($125.6 million) for 49.8 million units. It offers a 4.3 percent premium to the last close and over 40 percent above February levels when Iris first approached. The break fee rose to AU$1.9 million ($1.2 million).
The offer closes March 13, 2026, but Iris plans extension. RCT warned Queensland licensing probes won’t wrap before May end, a must for approval. Major unitholders Casinos Austria International and Accor, holding over 71 percent, back it and won’t withdraw if no better bid surfaces and experts deem it fair. An 80 percent acceptance threshold applies, plus casino, liquor nods, and share deals. Iris filed its bidder statement in August, RCT its target in late September.
High Season Buoys Cairns Performance
Seahon called Cairns’ back half lively, with domestic strength and international rebound minus Chinese drop. Morris expects cruise and air growth to aid, alongside events. Premium play held despite volume dip, thanks to win rates. EGMs, visitation ticked up, fueling rents.
RCT navigates regulatory heat, but rental reliance shields volatility.
Major Backers Commit Amid Uncertainty
Casinos Austria and Accor signal acceptance unless rivals top it or experts shift. Extension past a month could let early acceptors pull out, but majors pledge to hold. Licensing delays test patience, but Iris eyes May 31-plus wait for Queensland green lights.
Sydney-based Iris Hotel Group, part of Iris Capital, runs 13 hotels and two casinos: Canberra’s first legal one and Lasseters in Alice Springs.
Regulatory Hurdles Shape Timeline
Queensland suitability checks run to May end, delaying closure. RCT’s heads-up keeps unitholders looped, with Iris confirming stretch intent. The sweetened price and major support bolster odds, but 80 percent needs crossing.
Cairns’ metrics, 2.5 percent visits, 2.9 percent EGMs, 13.6 percent tables, paint resilience.
Profit Growth Meets Takeover Crossroads
FY25’s 6.4 percent profit lift shows rental power amid levies. During the high season, tourism rebound fueled it. Iris bid hangs on approvals, extension likely. With majors aboard and premium sweetened, RCT eyes close despite drags. Regulatory oversight looms, but Cairns momentum endures. As March nears, stakeholders watch Queensland calls and acceptance flow.
Source: Asia Gaming Brief (AGB)
