NSW plans to bring casino poker machine tax in line with hotels and clubs

The government of the Australian state wants to raise the tax on casino poker machines to the top rate of 60.67 per cent.

Australia.- The New South Wales (NSW) government plans to increase the tax rate for casino poker machines to bring the in line with machines at pubs and clubs. The move, which would come into effect from July, would see casino poker machines subject to a top tax rate of 60.67 per cent.

NSW treasurer Matt Kean said the move could raise an additional AU$364m (US$244.2m) over the next three years, helping to balance the state’s budget after the impact of the Covid-19 pandemic and natural disasters.

The Star Entertainment Group’s shares fell almost 12 per cent on Monday in response to the news. The casino operator said there had been no consultation.

CEO and managing director Robbie Cooke said: “We are not sure how the Government modelled its financials nor the basis for suggesting The Star does not pay its fair share of taxes. Specifically, in addition to state gaming taxes, The Star also pays millions in corporate taxes, with total taxes paid as a percentage of The Star’s profits being around 70 per cent, and as high as 80 per cent in the last 5 years when all the tax regimes are considered.”

The announcement comes a few days after prime minister Dominic Perrottet said he is determined to ensure that pokie rules are reformed, which may include the introduction of cashless gambling cards. Josh Landis, ClubsNSW chief executive officer, has said cashless gambling cards won’t solve the problem of money laundering in the state as claimed by the New South Wales Crime Commission (NSWCC).

Tax changes were announced in Victoria earlier this year. From 2023, Crown Resorts will be taxed more on its 2,600 poker machines, raising about AU$30m per year.