Crown chairman James Packer said Crown has for a long time been at a major competitive disadvantage on the issue of taxation. "Now, with the support of the Victorian Government, we will have a licence that enables us to compete on a level playing field to help drive tourism, jobs and economic benefit for the state," he said.
In addition, the state government will not increase casino taxes and the Melbourne Casino Licence will not be amended, without explicit consent from Crown.
Crown will make a series of upfront payments to the state government, in exchange for the 17-year extension and will also benefit from the removal of the "super tax" on international and interstate VIP program play from fiscal 2015.
Crown will pay an upfront $250m fee to the state government once the amendments to the relevant legislation, casino management agreement and casino licence become effective.
Further to this, the gaming group has conditionally agreed to make a payment of at least $100m in 2023, should normalised gaming revenue at Crown Melbourne grow by more than 4 per cent per annum. If revenue grows by more than 4. 7 per cent, Crown will pay an extra $100m.
Crown confirmed earlier speculation, announcing the deal was part of a series of reforms to its Melbourne Casino licence " improve the competitiveness of the Crown Melbourne".
Read more here: Business Spectator