In 2013, the Victorian government proposed a tax increase that would result in Crown Casinos paying an additional $57 million for its pokies. The casino operator spent months negotiating so that the terms would not bleed the company dry, and now it has been revealed that the tax has been scrapped. Initially, the tax proposed that Crown Casino would have to pay more than $22 000 per poker machine per year.
Since the casino has over 2500 pokies, it would have resulted in the casino operator paying an additional $57 annually. As such, James Packer and his team of executives would not submit to the new rules unless they would get something in return. During negotiations, Packer requested that the casino receive a number of concessions.
Firstly, Packer asked that the casino receive a significant extension on its license up to the year 2092. Additionally, the casino operator wanted a reduction for tax rates in the high roller room. For quite some time, the state government mulled over these negotiations, and politicians seemed to have decided that it just wasn’t worth it.
Victorian Treasurer Michael O’Brien issued a statement today to announce that the additional $57 million that the tax would have generated has been removed from the state budget. He has stated that the negotiations with Crown Casinos are still ongoing, but the tax will not be passed this year. “Consequently the associated estimates are not included in the 2014-15 budget,” he says.
“Negotiations have been constructive and the Victorian Government and Crown are working to achieve an outcome that delivers real value for both parties.”
Packer is working to ensure that the new tax doesn’t hit the company too hard. So, there is no telling for how much longer the negotiations will continue.
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