Crown Deal Under Fire in Victoria

A controversial agreement with the state of Victoria provides Crown Resorts’ Melbourne flagship with insurance against the costs the casino might accrue from problem-gambling policies that don’t exist yet. Critics are appalled and say the terms will tie the hands of future governments.

Politicians and academics have blasted an agreement between the government of Victoria and Crown Melbourne that compensates Crown Resorts’ flagship casino for up to 0 million in public funds for any future problem-gambling regulations that affect its bottom line.

The state’s parliament is expected to approve the deal, which is part of a bill that renews the resort’s license through 2050 with a sizable expansion of its gaming capacity in return for more than $900 million in payments to the government, including $250 million payable within seven days of passage.

State Treasurer Michael O’Brien, has said the agreement would support ongoing investment and jobs for the state and provide significant financial benefits.

Opponents have sharply disagreed.

Green Party lawmaker Greg Barber termed the compensation clause “absolutely extraordinary” and shows that Crown was aware of its dependence on problem gamblers.

“They’ve insured against measures that will actually reduce problem gambling,” he said.

Francis Markham, a problem gambling researcher with the Australian National University, agreed, saying the deal will handcuff future governments should they attempt to implement harm-minimization policies such as bet maximums and stricter smoking limits.

“I’m surprised the state government has the ability to legislate for future governments,” he said. “These are the kind of tactics we saw coming from the tobacco industry, which attempted to seek compensation following plain-packaging reforms. They are backhanded tactics that seek to delay reforms we know are in the public good.”

Linda Hancock, a Deakin University gambling expert and researcher, complained that Crown has enjoyed special treatment by the government for years.

“This legislation covers some of the most controversial areas of gambling reform where Victoria already lags behind many other countries in best practice. They’re not acting in the best interest of the Victorian people, and they are giving way too much compensation to Crown. It’s hard to fathom why they would give them this many concessions for so little benefit.”

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