Crown agrees licence reforms

ralian casino operator Crown Resorts Limited has reached an agreement with the Victorian Government on a number of reforms to the Melbourne Casino Licence.

Crown says the changes will improve the competitiveness of its Crown Melbourne integrated resort as a tourism destination.

The reforms include the extension of the licence from 2033 to 2050, the removal of a ‘super tax’ on international and interstate VIP program play in FY15, and the increasing of the number of gaming products Crown can install.

Crown will make a series of payments to the state, including A$250m once the amendments become effective, A$100m in FY23 if the normalised gaming revenue at Crown Melbourne grows by more than 4.0% per annum (compound) over the period FY14 to FY22, and an additional A$100m in FY23 if it grows by more than 4.7% per annum over the period. Crown will also make a payment of A$250m in 2033.

Crown Resorts chairman James Packer said: “Crown has for a long time been at a major competitive disadvantage on the issue of taxation. Now, with the support of the Victorian Government, we will have a licence that enables us to compete on a level playing field to help drive tourism, jobs and economic benefit for the state.”