A trigger event includes any change to the agreed tax regime for VIP gaming (Crown Sydney does not have poker machines), while a force majeure event includes an epidemic.
Independent MP for Sydney Alex Greenwich, who opposed the Crown project and called it “a blight on our city” when the casino floor opened last year, said the government should reject any changes to the tax guarantee.
“Crown got the site for next to nothing based on a deal that they would continue to provide tax revenue to the state. For them now to cry poor is really an insult to all Sydneysiders,” he said.
“The reason their bottom line is being impacted is that they are no longer able to have money laundered through their casinos, and they are no longer able to accept the proceeds of crime being gambled through their casinos.
“That is not a legitimate reason for now needing a further tax break. If they can’t honour their deal with the people of NSW, they should hand the land back.”
That land is now home to Sydney’s tallest building, containing Crown’s luxury hotel, the casino, restaurants and residential units.
In return for the right to develop the site, Crown agreed to pay a $100 million upfront licence fee and contribute at least $1 billion in gaming revenue over the first 15 years of the casino’s operation.
Crown now argues the economic and regulatory situation has changed, and it is suffering from a sustained lull in international high-rollers, partly as a result of COVID-19.
Former Liberal premier Barry O’Farrell, who announced the deal in 2013, declined to comment, as did successor Mike Baird. Crown was also contacted for comment.
In August, Treasurer Daniel Mookhey announced a reprieve for rival casino the Star Sydney, which was facing higher duties on poker machine profits under changes made by the former Coalition government.
He instead introduced a transitional arrangement that delays the higher tax rate until 2030. Star, which Mookhey said would be “unviable” if the tax hike had proceeded, agreed to maintain more than 3000 jobs and participate in a cashless gaming trial.
The Business Sydney lobby group urged the government to keep negotiating with Crown, saying the tax reprieve for Star was necessary. “It makes just as much sense to ensure Crown can also operate successfully”.
“Their contribution to tourism is important with Sydney yet to recover pre-COVID international visitor numbers,” executive director Paul Nicolaou said. “We need more international visitors to return.”
https://www.smh.com.au/national/nsw/crown-comes-under-fire-as-it-tries-to-escape-nsw-tax-deal-20231101-p5eglo.html?ref=rss&utm_medium=rss&utm_source=rss_national_nsw gaming company slammed as it tries to escape NSW tax deal