The New South Wales government threw a lifeline in the form of an overhaul of the tax regime for Star Casino. The transitional tax levy will be in effect for seven years.
The NSW government amended the previous tax arrangement with the casino. According to officials, it is one way to save casino jobs that were at risk.
According to online sports betting reports, the Coalition had proposed raising the tax rate on poker machines’ duties by between 46.7 and 60.67 percent. Also, they estimated around $360 million in additional revenue.
Tax Regime for Star Casino
Instead, the rate will peak at 22.91 percent in 2027 and remain at that level until midway through 2030. According to state officials, former treasurer Matt Kean did not include The Star in his planning process.
On Friday, Treasurer Daniel Mookhey indicated that the Star Casino would not have been profitable under the current tax rate.
Instead of a steep tax hike on poker machines, the government is instituting a new transitional tariff that will be phased in over the following seven years. According to betting odds experts, Mookhey predicted this would increase Star’s tax burden.
According to experts of online gambling in South Korea, the government has gotten at least three distinct opinions on Star’s financial health to make this decision.
Due to a tax rise on poker machine income in New South Wales, Star Entertainment Group had to lay off 500 employees in March.
With today’s statement, the New South Wales (NSW) government has required that Star maintain 3,000 full-time equivalent positions for the next six years. Also, it would have a more financially stable business model.
Robbie Cooke, CEO, and Managing Director of The Star, issued a statement confirming the company’s agreement in principle with the government.
Imogen Beynon, the United Workers Union deputy director (UWU), stated that the news was good news for UWU members working at The Star.
Liberal Party Deputy Leader Natalie Ward said the government had the wrong objectives when they cut taxes. She said that with this deal, gambling would get a boost.