Crown Resorts is bound to take a huge hit in the regions of South Australia, Western Australia, and Queensland due to the Point Of Consumption Tax (POCT). Betfair Australasia, Crown Resorts subsidiary, is set to be negatively affected by this new tax, along with several other properties owned by the group.
As a way of forcing the government to revoke this new form of tax revenue, Crown Resorts have tried to shift the government’s focus on how Betfair will have to up consumer price to try to balance their revenue. This will inevitably lead to many bettors bidding the bookie farewell and taking their money to other, more lucrative competitors, some of them often operating illegally. The subsequent leakage for the government implied by Betfair although considered borderline blackmail, may hold valid ground.
While Crown Resorts are playing the “You forced me to do it” card, they government fails to realize that the Tax will probably impact the purchasing power of a large number of consumers. It's simple market knowledge that whenever a company tries to balance their budget they end up laying off employees and increasing prices. Less consumers mean less taxes, especially in the form of VAT, meaning that the Australian Government should excercise extreme caution with their next moves.
About Crown Resorts
Crown Resorts constitutes Australia's leading gaming and entertainment group with two large subsidiaries, Crown Melbourne and Crown Perth. Τhe tourism and entertainment group does not limit its activities in Australia, as it also owns another large entertainment complex, Crown Aspinalls in London. The group has future projects of equal size coming up such as Crown Sydney, Alon Las Vegas, Proposed Queensbridge Hotel Tower in various parts of the globe.