Last month, the state of Victoria extended the license of Crown Melbourne until 2050. While the deal is meant to benefit the state’s economy, some fine print has been uncovered that has attracted criticism from responsible gambling advocates. Documents have revealed that Crown Casino may be compensated if any new problem gambling measures are implemented.

The deal will provide the state with nearly $1 billion from the casino operator, including an upfront payment $250 million. However, the agreement could also see Crown Casino receive at least $200 million per term should the operator’s profits take a dive due to numerous potential legislations. One of the legislations that may have an effect on the compensation is the smoking ban exemption for Crown Melbourne.

Currently, patrons in the VIP area of the casino are permitted to smoke, and it is one of the few venues in the state with this exemption. If the state passes a law to retract the exemption, the casino operator will receive generous compensation. New laws relating to responsible gambling may also be cause for compensation.

The Victorian government is considering passing laws that would reduce maximum bets, restrict ATM access and possibly introduce mandatory pre-commitment on casino pokies. Should these laws be introduced, Crown Casino stands to lose a great deal of gambling revenue. As such, the casino would be compensated by the government.

It certainly puts lawmakers in a tough position, as they will not be able to implement any new safe gambling initiatives without worrying about potential compensation for Crown Casino. As such, it has attracted a great deal of criticism.

“Anti-gambling campaigners say the deal could leave future governments scared of the financial impact of implementing new rules aimed at helping people addicted to gambling,” says Pat McGrath from ABC News. The Opposition has called on the state government to reconsider this move, but there has been no response.

We will keep you updated with further developments.

About the Author

George Anderson
Author George, has over 25+ years’ experience in the Pokies and Casinos industry throughout Australia and New Zealand. Loves to research new Pokies games on the block and follows announcements from top industry providers about their upcoming releases. As soon as a new interesting pokie game appears on his radar, George is there to check it out and give you the scoop before anyone else and tell you about all casino sites where can play the latest game. Before this gig, George worked as Pokie game tester, making him an ideal candidate for this genre of work. He is also an animal lover and a proud owner of three dogs.