James Packer’s Crown Casino in Melbourne received a license extension until 2050 from the Government of the Australian state of Victoria, that has defended its decision to allow for the multi-decade add-on. The Victoria Government will allow Packer to also expand table games and ‘pokie’ (slot) machines in Crown casinos, in return for 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 contract would support financial investment and jobs.

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

Crown casino president Packer had been additionally quick to highlight the identified economic benefits. He said that, while his company had invested $1.7 billion to update the casino, ‘it had for a number of years been at ‘a major competitive disadvantage on the problem of taxation.

‘Now,’ he added, ‘with the support of the government that is victorian 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 ended up being one of the main who spoke out up against the deal, nonetheless.

‘ 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 public that is victorian? Australia has 20 percent of all of the earth’s pokies, it has the biggest population of problem gamblers in the world, yet it has gone through without the debate or discussion.’

Five future governments, he added, would be bound towards the deal. ‘I think the public now features a world-weary cynicism about politicians, in addition they know massive political contributions go to government from the gambling industry. They want fewer pokies, not a maintenance or increase of current levels.’

Crown said it would expand the number of pokie machines and gaming tables under the new deal, nevertheless the number of pokie device licenses would remain equivalent, because it could be 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 to the Crown

This point that is last stated 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 an explanation to want to come quickly to Melbourne to invest their money,’ the treasurer noted.

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

‘ I see no explanation why the federal government should be providing 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 must certanly be component of a election platform and shouldn’t happen brokered in today’s world, but this really is a characteristic of gambling policy. The government is indeed beholden to your gambling industry, which is providing 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 ongoing company rose in the hours after the story originally broke.