Land-BasedCasinoLegal & Regulatory

Crown seeks clarification on government EGM tax proposal

Crown Resorts Limited has released a statement seeking clarification from the Victorian Government concerning its proposed changes to the tax rate for electronic gaming machines (EGMs) at Crown Melbourne.

crown clarify

The Victorian Government last month stated that it intends to increase the tax rate for such machines at Crown Melbourne from 1 July 2023, with the government noting that the change is expected to generate up to AU$30m (US$21.3m) per annum in additional revenue for the state.

The tax proposal from the Andrews Labor Government was part of a wider statement regarding the operator’s future. The government noted that it is “making sure Victoria’s casino operator is held to the highest standards of probity and integrity – ensuring the failures uncovered by the Royal Commission can never happen again.”

Crown, however, has since held discussions with the government seeking to clarify certain aspects of the proposal.

A statement from the operator read: “Based on those discussions, Crown estimates that if the proposed arrangements were in place during FY2019 (being the last financial year prior to Covid-19), the impact on the earnings of Crown Melbourne would have been approximately AU$35-AU$40 million. 

“The actual impact of the proposed arrangements on future earnings will depend on various matters including the final details of the proposed arrangements and the revenue generated from electronic gaming machines at Crown Melbourne.”

Crown added that it intends to establish a working group with the government to further consider the implications for the operator and the “process for implementing the changes proposed by the government, which will require legislation.”

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