One of the biggest gambling companies in Australia – Crown Melbourne, may soon sign a deal with the Victorian government, which will ensure that if any problems concerning its bottom line occur, it is to receive the staggering amount of $200 million in order to cover its losses.
The compensation, part of the contract, is “absolutely extraordinary”, according to the member of Upper House of the Victorian Greens – Greg Barber. The aspiration of Crown to sign such a deal shows that it is highly dependent on players with gambling problems and by having such a contract it ensures its “immunity” of any more stringent legislation reforms in the future. The member of the Victorian Greens further added that Crown is insuring itself against things that are in fact proven to reduce the gambling problems of troubled players. “They must know that a significant amount of their profits come from gambling-related harm.”
Crown Melbourne Shows Power Over the Government
Greg Barber speculated that casinos in other states will now look to make a similar deal. Crown’s casino license will then be renewed up until 2050. In order for Crown to get such a deal, it offered the government a payment of around $1.15 billion with $250 million during the first week. The treasurer of the local government explained that this agreement will be of great help to the state and will create many jobs.
Researcher from the Australian National University argued that the agreement has been “unprecedented.” He explains that if such a legislation is accepted, any future governments will not be able to accept new gambling reforms, or at least not until 2050. Lower limits on maximum bets, addressing the issues of problem gamblers as well as introducing a smoke ban in VIP lounges are some of the reforms, which, if accepted, will allow Crown to sue the government for massive amounts of money due to the compensation clause.
The offer of Crown is said to be “measly” and that it will manage to make the money back long before 2050. For example, its slot machines are reported to make twice as much as other casinos.
Another researcher, Prof. Linda Hancock, mentioned that Crown has been receiving favorable treatment from the government for a long time, and that the current $1.15 billion payment will not be enough to cover any future complications. The locals think that the local government leaves the interests of its citizens behind, and blindly goes after what Crown Melbourne desires. “It’s hard to fathom why they would give them this many concessions for so little benefit.” The researchers continued by giving statistics, according to which more than 130 suicides in 2013 were due to gambling addictions.
