The government of the state of Western Australia has awarded a tax break to make it easier for Crown Perth owner Crown Resorts to lure international high rollers to the resort.
Racing and Gaming Minister Terry Waldron was set last week to tell the state parliament that Crown’s tax on international VIP revenues would be cut from 11 percent to 8 percent.
In return, Crown is promising to pay at least A$45.25 million to the state over the next five years, well above the $37.4 million paid over the past five years.
“Crown Perth is an important economic contributor to WA not only in terms of tax revenue to the state but also employment and business opportunities for thousands of West Australians,” Waldron said.
Negotiations between Crown and the government began two years ago after Perth watched its turnover from international high rollers fall dramatically. In 2009-10, big-spending gamblers, mainly from China, wagered $12.4 billion at the casino. That figure plummeted to $8.2 billion a year later as Asian gamblers deserted WA in favor of the two new Singapore casinos, which are closer and are taxed only 8.5 percent on VIP play.
Perth clawed back its market share but it came at a heavy cost, with huge outlays on hotel upgrades, private jets, a yacht and opulent tours of the state.
Crown believes the lower rate, which with a local levy of 1 percent brings the effective rate to 9 percent, will allow it to match the incentives offered by casinos in Macau, Singapore and Las Vegas.
Crown Perth pays the WA government about $120 million a year in tax.
