Clause 26.5 of the Casino Management Agreement provides that if the casino licence is cancelled,
the State may require Crown to grant a sub-lease of the “Melbourne Casino” to any new casino operator.
The "Melbourne Casino" is described by reference to certain drawings as those areas of the
Melbourne Casino Complex which constitute a casino and includes the areas in which money counting, surveillance, storage and other activities related to the conduct and playing of games are carried on.
The Melbourne Casino Complex includes the Melbourne Casino (as described above) and the
areas defined as the "Ancillary Facilities", which include hotel, restaurant, retail, recreation, entertainment and carparking facilities, residential and office accommodation, staff facilities, staff carparking, coach storage facilities and open space areas.
As a result, in the event of cancellation or surrender of the casino licence, the Management
Agreement imposes an obligation to sub-lease only those parts of the Melbourne Casino Complex that are identified as those areas which constitute a casino (if required to do so by the State). The Management Agreement does not impose an obligation on Crown to sub-lease the Melbourne Casino Complex in its entirety, or any part of the Melbourne Casino Complex areas other than those areas that constitute the Melbourne Casino.
In the event that the Melbourne Casino licence is cancelled, Crown accepts that the State may
require it to grant a sub-lease of the Melbourne Casino (as described above) at market rent.
CWN Price at posting:
$9.36 Sentiment: None Disclosure: Not Held
