VICTORIAN COMMISSION FOR GAMBLING AND LIQUOR REGULATION AMENDS THE MELBOURNE CASINO LICENCE

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1 ASX / MEDIA RELEASE FOR IMMEDIATE RELEASE 3 NOVEMBER 2014 VICTORIAN COMMISSION FOR GAMBLING AND LIQUOR REGULATION AMENDS THE MELBOURNE CASINO LICENCE MELBOURNE: Crwn Resrts Limited (ASX: CWN) tday annunced that the Victrian Cmmissin fr Gambling and Liqur Regulatin has determined t amend the Melburne Casin Licence t give effect t the Agreement between the Victrian Gvernment and Crwn annunced n 22 August The amendments t the Melburne Casin Licence will take effect frm tday. These amendments will help bst Victrian turism and create new jbs as they will allw Crwn Melburne t cmpete mre effectively in interstate and internatinal markets. Under the Agreement annunced n 22 August 2014, Crwn must nw pay t the State $250 millin within seven days. A cpy f Crwn s annuncement dated 22 August 2014 is attached. ENDS COPIES OF RELEASES Cpies f previus media and ASX annuncements issued by Crwn are available at Crwn s website at Page 1

2 ASX / MEDIA RELEASE FOR IMMEDIATE RELEASE 22 AUGUST 2014 CROWN REACHES AGREEMENT WITH THE VICTORIAN GOVERNMENT ON A LICENCE REFORM PACKAGE TO BOOST TOURISM AND JOBS MELBOURNE: Crwn Resrts Limited (ASX: CWN) tday annunced that it has reached agreement with the Victrian Gvernment n a number f refrms t the Melburne Casin Licence which will imprve the cmpetitiveness f the Crwn Melburne integrated resrt as a turism destinatin cmpared t ther integrated resrts in Australia and Asia. The refrms will help bst Victrian turism and create new jbs as they will allw Crwn Melburne t cmpete mre effectively in interstate and internatinal markets. Victrian taxpayers will als benefit frm a substantial upfrnt licence payment t be made by Crwn. The agreement includes the fllwing arrangements: Super tax n internatinal and interstate VIP prgram play will be remved frm FY15 Crwn will be entitled t install additinal gaming prduct as fllws: Increase by 40 the maximum number f table games permitted t perate (frm 400 t 440 (plus 100 pker tables)) Increase by 50 the maximum number f fully autmated table game terminals permitted t perate (frm 200 t 250) Within the state-wide limit f 30,000 gaming machines, increase by 128 the maximum number f gaming machines permitted t perate (frm 2,500 t 2,628) The Melburne Casin Licence will be extended frm 2033 t 2050 Crwn will make a series f payments t the State A payment f $250 millin nce the amendments t the relevant legislatin, casin management agreement and casin licence becme effective A payment f $100 millin in FY23 if the nrmalised gaming revenue at Crwn Melburne grws by mre than 4.0% per annum (cmpund) ver the perid frm FY14 t FY22 An additinal payment f $100 millin in FY23 if the nrmalised gaming revenue at Crwn Melburne grws by mre than 4.7% per annum (cmpund) ver the perid frm FY14 t FY22 A payment f $250 millin in 2033 Page 1

3 Crwn has guaranteed t pay the State a minimum f $35 millin per annum in gaming taxes in relatin t the new gaming prduct ver the six-year perid cmmencing frm FY16 Crwn and the Victrian Gvernment have agreed that the previusly prpsed gaming machine levy will nt apply t Crwn Melburne. Crwn and the Victrian Gvernment have cnfirmed that, unless Crwn cnsents, casin taxes will nt be increased and the Melburne Casin Licence will nt be amended. They have als agreed that certain ther regulatry actins adverse t Crwn can trigger cmpensatin. This greater regulatry certainty will allw Crwn t cntinue t invest in and increase emplyment at Crwn Melburne. Implementatin f the agreement is subject t: amending legislatin being intrduced int the Victrian Parliament in the Spring sessin; and amendments t the Melburne Casin Licence being apprved by the Victrian Cmmissin fr Gambling and Liqur Regulatin The Chairman f Crwn Resrts, Mr James Packer, said: Crwn is ne f Australia s mst successful turism cmpanies. In the ten years t 2016 we will have invested $1.7 billin t upgrade the Crwn Melburne integrated resrt t make sure we remain cmpetitive with the best integrated resrts in the wrld. Despite this investment, Crwn has fr a lng time been at a majr cmpetitive disadvantage n the issue f taxatin. Nw, with the supprt f the Victrian Gvernment, we will have a licence that enables us t cmpete n a level playing field t help drive turism, jbs and ecnmic benefit fr the State. Crwn Melburne prvides emplyment fr ver 8,800 peple and is a vital piece f turism infrastructure fr Victria. I am very prud that in 2013 we were awarded Victrian and Australian Emplyer f the Year and I am extremely pleased that the majr ecnmic and turism cntributin Crwn makes t the State has been recgnised by the Victrian Gvernment. We will cntinue t wrk clsely with the Victrian Gvernment fr the betterment f the State. A cpy f the annuncement made by the Victrian Gvernment is attached. ENDS COPIES OF RELEASES Cpies f previus media and ASX annuncements issued by Crwn are available at Crwn s website at Page 2

4 Media The Hn Michael O Brien MP Treasurer releasee Friday 22 August 2014 Agreement with Crwn Melburne t supprt investmentt and jbs frr Victria The Victrian Calitin Gvernment has reached an agreementt with Crwnn Melburne. Treasurer Michael O Brien said the agreement will supprt nging investment and jbs fr Victria in an increasingly cmpetitive envirnment. This agreement prvides significant financial benefits t the State, as well as imprved cmpetitiveness and investment certaintyy fr Crwn and the 8,800 peple wh wrk there, Mr O Brien said. This is a win-win utcme. It is gd fr jbs, gd fr turism and gd fr investment. Crwn s Licence and the Casin Management Agreement will be b amendedd in return fr additinal payments t the State f up t $ $910 millin. Under the agreement Crwn s Licence t perate the Melburnee Casin will be extended frm 2033 t Crwn will als have greater capacity fr its nsite gaming peratins. The agreement permits up t an additinal 40 gaming tables, 500 fully autmated table game terminals and 128 electrnic gaming machines (within the existing statewide cap f 30,000 gaming machines). This agreement prvides fr a mdest increase in prduct at Crwn Melburne but n increasee in the number f electrnic gaming machines permittedd in Victria, Mr O Brien said. The super tax n cmmissin-based play fr internatinal and interstate VIP players will be remved t ensure Crwn remains cmpetitive with ther casins in Australia and internatinally. The agreement als preservess a number f Crwn s existing regulatry arrangements ver the licence term, prviding certainty t supprt nging investment and jbs. These arrangements include measures related t respnsible gambling. Crwn Melburne is Victria s largest single-site emplyer. In an a increasingly cmpetitive market, this agreement supprts Crwn Melburne in attracting internatinal and dmestic turists supprting nging investment and jbs, Mr O Brien said. /2 Visit fr mre news

5 2 Under the agreement, Crwn will pay thee State up t $910 millin, by way f lump sum payments, installments and additinal taxx revenue. This includes: An upfrnt payment f $250 millin in 2014 and a payment f $2500 millin in 2033; Payments f up t $200 millin in 2022 cntingent n Crwn Melburne s gaming revenue grwth; and Guaranteed annual tax payments related t new gamingg prduct ff at least $35 millin per annum fr six years cmmencing in (ttal f $210 millin). Further annuncements regarding initiatives that will be supprted by the additinal Budget capacity created by the agreement will bee made in the cming weeks. w The Casin Management Agreement wass established in 1993 and a has been amended n nine ccasins. Implementatin f the agreement is subject t the regulatry apprval f the Victrian Cmmissin fr Gambling and Liqur Regulatin and legislatinn in the Parliament f Victria. Media cntact: Rachel Obradvic rachel.bradvic@minstaff.vic.gv.au Visit frr mre newss