CROWN Casino is demanding a 99 year licence from the government in a radical bid that would extend its operations until 2092.
Herald Sun – In backroom negotiations the casino giant has told the Napthine Government it deserves nearly century long licence to gamble because of a new tax on its poker machines announced in December. Crown is understood to be playing hardball with the Department of Treasury and Finance aggressively seeking new tax breaks for its high roller tables. Gambling chiefs have argued this is deserved because the pokies tax will cost them $22,715-per-machine, or $57m a year, when introduced mid-year. The proposals have come about because the State Government wants to ignore a 2009 Brumby Government agreement with Crown that there would be “no further amendments in casino taxes or levies until the end of 2022”.
The new levy would reap the government an extra $57 million a year from 2014-15, and was revealed by Treasurer Michael O’Brien during the midyear Budget update in December. A gaming source said Crown was “apocalyptic” about the decision, which caused its shares to plunge when it was announced, because of the Brumby Government agreement. The government’s Budget update document has no mention of the need to negotiate with Crown, but a press release issued at the time said the casino levy would be “subject to the satisfactory conclusion of negotiations and mutual agreement between the Victorian Government and Crown to establish an outcome that delivers real value for both parties”.
The Herald Sun has learnt that the qualification had to be inserted at the last minute, and that the negotiation over the levy was added to broader discussions about Crown’s operations. It is understood Crown was satisfied with the last-minute inclusion of the clause, and is adamant the levy will not go ahead unless both parties come to an arrangement.
The 2009 Brumby Government agreement was made after Crown was hit with a staged 10.32 per cent tax increase on its poker machines, in exchange for extra gaming tables and land use. The government believes it is entitled to introduce the new levy, which would benefit taxpayers and enable it to continue to run Budget surpluses and build key infrastructure.
The levy would allow the casino to reduce returns given to poker machine players from 87 cents in the dollar to 85 cents, in line with other venues, but Crown wants more sweeteners. One source said the 99 year licence Crown put on the bargaining table would be an extension of the casino’s original 1993 licence, due to expire in 2033. This would take Crown’s licence out to 2092.
