Australia’s Star Entertainment Group has announced that it has agreed a deal with the NSW state government that will see a more ‘sustainable’ increase on casino duty rates than the previously announced 60%.
The previous state government had initially proposed a rate that would see the company pay an average of more than 60% on all revenues from pokie machines at its Sydney casino. At the time, Star stated that the new rates would put a significant number of jobs in jeopardy as the hike was “not sustainable and flawed in its design.”
However, according to today’s announcement, Star has been successful in its negotiations with the NSW Treasurer, Daniel Mookhey MLC.
The deal will see duty rates on pokie machines remain at the current rate of 20.91% until the end of the current fiscal year.
Increases are as follows:
- From 1 July 2024 – 21.91%
- From 1 July 2027 – 22.91%
From 1 July 2030 all duties will be paid on a rising scale:
| That part of AMPR that is | Pokie duty rate inclusive of GST |
|---|---|
| Less than $2,666 | 0% |
| $2,666 or more and less than $6,667 | 37.6% |
| $6,667 or more and less than $12,500 | 42.1% |
| $12,500 or more | 51.6% |
Speaking of the newly agreed rate The Star’s CEO and Managing Director Robbie Cooke said:
“The formal consultative and structured approach implemented by the Government has enabled an in-principle agreement to be reached which protects our Sydney team’s jobs and the viability of The Star Sydney. While the in-principle agreement will result in an uplift in duties payable to the State, it has due regard to the circumstances of our Sydney business and as such helps to create a sustainable path forward for The Star Sydney. The expected additional duty payable in FY24 is circa $10 million.
It is also designed to provide employment certainty for team members in arrangements agreed with the United Workers Union. In addition, it will see The Star Sydney introduce a trial of its cashless gaming machine technology in October this year on 50 gaming machines and 8 gaming tables. The arrangements enable us to continue working at pace to implement the significant reforms required to restore The Star Sydney to suitability, earn back the trust of the community, and ensure we remain a valuable contributor to the NSW economy.”
Image credit: llee_wu / CC BY-ND 2.0
Ciaran has been working within the Gambling Industry as a deep analyst since 2019. His deep knowledge and understanding of all the gambling regulations, and processes makes him a true asset, and an always valuable point of view for Gambling Industry News, allowing us to cover every topics from a brand new perspective.