Crown Limited is currently in talks with the Victorian government, negotiating a potential tax increase and license extension. The local government recently introduced a new pokie levy and Crown is reluctant to pay up. As such, the casino operator has requested that its gambling license in Victoria is extended until 2092. In 2009, the Brumby government came to an agreement with the casino operator.
In return for a 10.32% increase on poker machine profits, the casino operator was awarded with additional gaming tables and land use capabilities. As part of the deal, the government vowed that no additional changes would be made to Crown’s poker machine taxes until 2022. Now, the Napthine government is eight years to early in its request for Crown Casinos to pay a higher poker machine tax.
The levy could cost Crown up to $22 715 per year, adding up to $56 million annually. The money raised from the tax would create a budget surplus, greatly benefitting the state. As such, government officials believe that the gaming industry should support the levy – but Crown is not going to give in easily. Although the levy will allow gaming operators to reduce player returns from 87% to 85% , Crown wants more.
The casino operator wants an extension on its original 1993 gaming license, which will extend to the year 2092.
Crown also hopes to negotiate for lowing tax rates for high roller players. It may seem like the operator is asking for a lot but, Chairman James Packer confirms that he is dedicate to coming to a solution that will benefit the local community. In a recent statement, he said: "We look forward to continuing discussions with the Victorian Government to create even more jobs, taxes and economic growth for the people of Victoria".
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