Operator News

Australia – Reprieve for Star Sydney as NSW government delays tax increase

The implementation of increased taxation in New South Wales has been put off until after the ‘Parliamentary winter recess’ granting Star Entertainment Group a reprieve from the increase which the casino operator said is ‘not sustainable’ and ‘flawed in design.’

Tax on electronic gaming machines should have been increasing from 32 per cent to over 60 per cent for The Star Sydney.

In a ministerial statement, NSW Treasurer Daniel Moohkey said: “In December 2022, the previous government announced an increase in casino tax rates with effect from 1 July 2023. Although the tax increase was not legislated, this measure was written into the budget and was inherited by the current government as a legacy policy upon election in March. Since then, the government has been having discussions with the casinos about implementing these new tax arrangements. To permit these conversations to continue, the government plans to pursue the legislation following the forthcoming Parliamentary winter recess.”

Star’s CEO and Managing Director Robbie Cooke stated: “This proposed duty increase was policy on the run by the former Treasurer, was ill-conceived with no consultation and had no regard to the capacity of our Sydney operation to afford the impost. If implemented as originally proposed, the additional duty would significantly challenge the economic viability of the Sydney business and put the jobs of up to 4,000 hard working Sydney employees in jeopardy.

“We will continue to engage with the new NSW Government to guarantee the jobs of our team members while working hard to implement the significant reforms required to restore The Star to suitability and to ensure it remains a valuable contributor to the NSW economy.”