Crown Casinos has struck up a lucrative deal with the Victorian government that will greatly benefit the state and the casino operator itself. Originally, Crown’s license was set to expire in 2037. Now, after negotiations, the company has secured a 17-year license extension until 2050, which will generate generous revenue for the state government over the course of the next 36 years.
The deal will be mutually beneficial, as the Victorian government will receive an upfront payment of $250 million this year. Over the course of the casino’s licensing period, the government will earn $910 million. However, the government has not revealed just how much money Crown will earn from this new deal.
"It delivers substantial financial benefits to Victorians but it also helps improve investment certainty and protects jobs," says Michael O’Brien, state treasurer. "It's good for investment, it's good for jobs, it's good for tourism and it's good for Victoria's bottom line." As part of the deal, Crown Casinos could also receive an additional 128 pokie licenses. However, this would not result in an overall increase in the number of poker machines in the state.
As demonstrated by the passing of many new gambling safeguards, the Victorian government is very careful when it comes to introducing new games into the local gambling market. Mr O’Brien has called the potential new gaming licenses a ‘modest increase’. The agreement was only just announced, and it is already attracting criticism from responsible gambling campaigners.
According to ABC News, Tim Costello wonders why it was necessary to extend the deal until 2050. He believes that something suspicious is going on, and he is asking questions. “We really absolutely demand to know why now, what's the urgency?" he asks. "We lock up any options we might have until 2050."
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