Australian casino operator Crown Resorts said in a filing with the Australian Stock Exchange on Monday that it would have to pay 250 million Australian dollars ($217.7 million) to the Victorian state government in its home state of Melbourne within seven days.
The money is meant to be recognised for Crown Melbourne’s 17-year extension to its casino licence, which was announced in August and confirmed by the Victorian Parliament in mid-October.
As part of the deal, the Crown Melbourne licence is valid until 2050. The so-called “super tax” on gambling by international and weekly VIP players will also be removed from fiscal 2015.
The company, which is making a joint venture in the Macau and Philippine casino markets through Melco Crown Entertainment, will also be allowed additional live dealer tables, electronic tables and slot machines under its contract with Victorian authorities.
Under the new rules, Crown Melbourne will have access to up to 40 new table games (from 400 to 440), fully automated table game terminals (from 200 to 250), and 128 additional consoles (from 2,500 to 2,628) within the maximum 30,000 game consoles allowed across the state.
Under the new agreement, casino operators will be required to make a series of additional payments to the state, amounting to up to A$910 million via lump sum, instalments and additional tax revenues, depending on the casino’s performance.
Crown Resorts said in a statement: “This reform will help boost tourism in Victoria and create new jobs, enabling Crown Melbourne to compete more effectively in state and international markets. Victorian taxpayers will also benefit from the significant upfront licensing costs owed to Crown.”
Negotiations between Crown Resorts and the Victorian government began in December 2013 after a new slot machine tax was announced at Crown Resorts costing around A$50 million a year as part of an interim budget review.
Crown Resorts’ group-wide revenue rose 65.7% year-over-year to A$656 million for the year ended June 30, with strong growth from the Macau joint venture helping it offset flatness in Australia.
But on Oct. 16, Crown Resorts Chairman James Packer was cautious about Macau at Crown’s annual general meeting. 프라그마틱 슬롯 사이트
The joint venture’s Philippine resort, City of Dreams Manila, could open its first phase before the end of the year, but a date has not yet been confirmed.