Crown reaches license reform agreement with Victorian government

    Crown Resorts announced that is has reached agreement with the Victorian Government on a number of reforms to the Melbourne Casino License which will improve the competitiveness of the Crown Melbourne as a tourism destination compared to other integrated resorts in Australia and Asia. The reforms allow Crown Melbourne to compete more effectively in interstate and international markets, thereby boosting tourism numbers to Victoria and creating new jobs. Among the reforms are the removal of a Super Tax on interstate and international VIPs from FY15, permission to increase the number of fully automated table game terminals from 400 to 440, gaming machines from 200 to 250, and the number of gaming machines from 2,500 to 2,628. Its license will also be extended from 2033 to 2050.
    In return, Crown will make a number of payments to the State, including a one-off payment of $250 million once the amendments become effective, a payment of $100 million if gaming revenue grows by a compound rate of 4 percent between FY14 to FY22, an additional payment of $100 million if gaming revenue grows by 4.7 percent (compound) in the same period, and a payment of $250 million in 2033. Crown has guaranteed to pay the State a minimum of $35 million per annum in gaming taxes in relation to the new gaming product over the six-year period commencing FY16.
    The amendments are subject to the Melbourne Casino License being approved by the Victorian Commission for Gambling and Liquor Regulation.