The Wrest Point Riviera hotel was purchased by the Federal Group in the 1960s, and the new owners approached Premier Eric Reece about the prospect of the Tasmanian government granting a licence to create an entertainment complex and convention centre that would contain a small casino on the premises,[1] citing that it would attract tourists during Tasmania's traditional winter "tourist slump".

Reece and Everett then withdrew the bill and on 31 October 1968 announced a referendum would take place to decide the issue.

The question put to the people was:Are you in favour of the provisions of "Wrest Point Casino Licence and Development Act, 1968", the full text of which has been published in the newspapers?

After a non-stop thirty-hour debate and with the vocal opponent Mac Le Fevre overseas and not paired, the bill passed at 5am on 8 November 1968.

There was considerable opposition to the casino, and concern over the fact that a monopoly licence was awarded to Federal Hotels without any call for a tender.