The casino operator has signed an agreement with the state.
Australia.- The Star Entertainment Group has announced that it has reached an agreement with the New South Wales government regarding new tax requirements. The agreement was signed on November 21 after months of negotiations.
The casino operator will be subject to a number of new tax measures, including an increase in the duty rate on rebate play from 10 per cent to 12.5 per cent and an increase in the duty rate on table games non-rebate play from 17.91 per cent to 20.25 per cent. The company will be required to pay an additional levy of 35 per cent on all gaming revenue above AU$1.125bn (US$731.36m) per financial year.
The company estimated that the changes cost it up to AU$1.11bn over the next five years. It has already laid off 500 full-time employees and frozen salaries.
The Star’s Group CEO and managing director, Robbie Cooke, said: “The Star appreciates the constructive engagement on this process with the current NSW Government. The formalisation of these arrangements protects our Sydney team’s jobs and enables us to continue the important ongoing work required to restore The Star Sydney to suitability, and to earn back the trust of our stakeholders.”
In its financial results for the fiscal year 2023, The Star Entertainment Group reported that its net loss grew from AU$203m in the prior year to AU$2.44bn (US$1.57bn). The company reported a 22 per cent year-on-year increase in gross revenue to AU$1.86bn (US$1.20bn) and a 34 per cent increase in EBITDA to AU$317m (US$204m).