Crown Resorts Disputes Victorian Government’s Projected Tax Revenue from Pokies Increase

Crown Resorts Limited has formally sought further details from the Victorian Government concerning its planned tax increase on electronic gaming devices, colloquially referred to as “pokies” in Australia. Last month, the government unveiled its intention to raise the tax rate on these machines at the Melbourne casino, with the adjustment scheduled to commence in July. They anticipate the modification will yield up to an extra $30 million AUD (approximately $21.3 million USD) each year for the state.

Crown contends that the government’s projections are erroneous and deceptive. According to their own computations, the effect on their profits would be considerably greater, ranging from $35 to $40 million AUD. This disparity is driving Crown’s call for enhanced transparency and lucidity from the government.

This tax scheme is one element of a broader initiative by the Labor government, headed by Premier Daniel Andrews, to enact more stringent regulations on the gaming sector. This follows a royal commission that exposed grave misconduct within Crown’s activities, encompassing money laundering and reckless gambling behaviors. The government has declared that their objective is to hold casino operators to the utmost standards of probity and guarantee that the errors of the past are not replicated.

The genuine influence of the suggested modifications on upcoming profits remains uncertain. The ultimate outcome hinges significantly on the specific aspects of the arrangement and the extent to which Crown Melbourne generates income from its gaming machines.

Crown further stated their intention to collaborate closely with authorities to determine the precise ramifications of these alterations on their operations. They will also participate in the implementation process, which necessitates the enactment of fresh legislation.