James Packer’s Crown Casino in Melbourne received a permit extension until 2050 through the Government of the Australian state of Victoria, which includes defended its decision to allow for the add-on that is multi-decade. The Victoria Government will also allow Packer to expand table games and ‘pokie’ (slot) machines in Crown gambling enterprises, in return 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 claim 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 advantages,’ he said, ‘as well as enhanced competition and investment certainty for Crown and the 8,800 people who work here.’

Crown casino chairman Packer ended up being additionally fast to highlight the recognized benefits that are economic. He said that, while his company had invested $1.7 billion to update the casino, ‘it had for a very long time been at ‘a major competitive drawback on the problem of taxation.

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

Anti-Gambling Backlash

Australian Churches Gambling Taskforce Chairman Rev. Tim Costello was one of the most significant who spoke out from the deal, however.

‘ This whole thing smells,’ he said. ‘This close to an election, why would you are doing a deal without transparency, and with such haste, when it has major implications for the Victorian public? Australia has 20 % of all the world’s pokies, it has the biggest population of problem gamblers in the world, and yet this has gone through without any debate or discussion.’

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

Crown said it would expand the quantity of pokie machines and video gaming tables under the new deal, however the number of pokie device licenses would stay similar, because it is absorbing existing licenses from pubs and clubs. Additionally, the Victoria government also agreed that a ‘super-tax’ will also be eliminated on all high-rolling VIP players from next year.

Concessions towards the Crown

This last point, stated O’ Brien, will allow Crown to compete with casinos in Macau and Singapore.

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

However, Deakin University gambling specialist 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 sorts of concessions and deals is part of a election platform and shouldn’t are brokered behind closed doors, but this will be a characteristic of gambling policy. The federal government is really beholden towards the gambling industry, which is providing them this candy to fill government coffers for their election campaign.’

Despite negative publicity, the deal dramatically fortifies the place of Crown Resorts and this was reflected in the stock exchange. Shares in the company rose in the hours after the story initially broke.