James Packer’s Crown Casino in Melbourne received a license extension until 2050 from the federal Government of the Australian state of Victoria, which includes defended its decision to allow for the multi-decade add-on. The Victoria national will also allow Packer to expand table games and ‘pokie’ (slot) machines in Crown gambling enterprises, in substitution for re payments of up to A$910 million (US$847 million).

Politicians and anti-gambling groups have called the deal ‘grubby’ and ‘back-door,’ and declare that lacks transparency. But Victoria’s treasurer, Michael O’Brien, said that the agreement would support economic investment and jobs.

‘This contract provides significant financial benefits,’ he said, ‘as well as enhanced competitiveness and investment certainty for Crown and the 8,800 people who work there.’

Crown casino president Packer ended up being additionally quick to highlight the observed benefits that are economic. He said that, while his business had invested $1.7 billion to update the casino, ‘it had for a time that is long at ‘a major competitive drawback on the issue of taxation.

‘Now,’ he added, ‘with the support of the Victorian government, we will have a license that allows us to compete for a level playing field to help drive tourism, jobs and economic benefit for the state.’

Anti-Gambling Backlash

Australian Churches Gambling Taskforce Chairman Rev. Tim Costello was among the many who spoke out from the deal, nevertheless.

‘ This thing that is whole,’ he said. ‘This close to an election, why would you do a deal without transparency, and with such haste, whenever it has major implications for the Victorian public? Australia has 20 percent of the many world’s pokies, it has the biggest population of problem gamblers in the world, and yet it has gone through without the debate or discussion.’

Five governments that are future he added, would be bound to the deal. ‘I think the general public now possesses world-weary cynicism about politicians, plus they know massive political donations get to government from the gambling industry. They want fewer pokies, perhaps not an increase or maintenance of current levels.’

Crown said it would expand the amount of pokie machines and video gaming tables under the new deal, however the number of pokie machine licenses would remain the exact same, because it would be absorbing existing licenses from pubs and clubs. Year additionally, the Victoria government also agreed that a ‘super-tax’ will also be removed on all high-rolling VIP players from next.

Concessions to the Crown

This last point, said O’ Brien, will allow Crown to compete with gambling enterprises in Macau and Singapore.

‘ This is a very industry that is competitive. We want to guarantee that high rollers from overseas find a reason to desire to come to Melbourne to spend their money,’ the treasurer noted.

However, Deakin University gambling expert and researcher Professor Linda Hancock questioned the logic behind this.

‘ I see no good reason why the us government should be offering any concessions to Crown, it’s quite outrageous really,’ she said. ‘Crown has been systematically under-taxed for years. These types free slot games lightning link of concessions and deals must certanly be part of a election platform and should not have been brokered behind closed doors, but that is a characteristic of gambling policy. The federal government can be so beholden to your gambling industry, which is offering them this candy to fill government coffers for their election campaign.’

The deal significantly fortifies the position of Crown Resorts and this was reflected in the stock market despite negative publicity. Stocks in the business rose in the hours after the story originally broke.