New South Wales may considers amending planned gambling tax hike
The NSW government may renegotiate a gaming tax as Star Entertainment faces financial challenges.
Australia.- The New South Wales government is reportedly considering the renegotiation of a gaming tax rise after The Star Entertainment Group announced plans to lay off 500 employees and freeze wages due to financial problems. The tax rise is intended to raise an additional AU$364m (US$244.2m) over three years, but premier Chris Minns now reportedly fears a social conflict.
As part of policy matching arrangements announced in Victoria last year, the NSW government announced increased taxes on poker machines and gambling tables at The Star and Crown Sydney casinos. From July 1, casino gaming profits will be taxed at 60.67 per cent, up from 31.57 per cent now.
In recent years, The Star and rival Crown Resorts have been under intense scrutiny after damaging inquiries revealed their operations enabled money laundering. This, coupled with the crisis in the wake of the Covid-19 pandemic, has put the two giants of the gaming industry in an uncomfortable financial situation.
Crown Resorts reported an AU$945.4m (US$632.18m) loss for the full-year 2022 while earnings before interest, tax, depreciation and amortisation (EBITDA) was negative AU$699.6m in 2022.
