License Extension And Tax Relief For Australian Crown Resorts
There are few governments which can resist the lure of gambling revenues. Whether you support or oppose gambling there is no denying that people will gamble regardless if it is legal or not. The benefit of legalized gambling is that the governments are able to utilize gaming revenues to bolster social projects which otherwise would not be able to be funded.
Australian billionaire James Packer’s Crown Resorts Ltd has just been granted an extension for his gaming licence in Australia’s’ second most populous state Victoria. Until now Packer had been complaining that the high tax rate on high rollers which had resulted in him being impended by an unfair “super tax” which put them at a competitive disadvantage.
The latest extension for 17 years of their biggest casino comes with a hefty price tag as Crown Resorts will have to make three payoffs starting from 2016 at a rate of about A$35million annually. Packer who owns 50.1 percent of the gaming giant will be happy at the licence extension the earnings at the Crown Melbourne casino only grew 2.8 percent in the year to June 30 which is nothing compared the their joint venture with Melco Crown Entertainment which almost doubles in Macau.
A statement from Packer summed up his delight at the good news,” 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.”
Other details of the licence agreement include the extension to 2050 with increases allowed of gaming tables and slot machines. Investors responded favorably to the news with Crown shares trading up about 1.6 percent at A$16.23.