{"id":1860508,"date":"2023-11-21T13:50:10","date_gmt":"2023-11-21T18:50:10","guid":{"rendered":"https:\/\/platogaming.com\/plato-data\/star-entertainment-signs-binding-contract-with-nsw-government-on-casino-duty-rates\/"},"modified":"2023-11-21T13:50:10","modified_gmt":"2023-11-21T18:50:10","slug":"star-entertainment-signs-binding-contract-with-nsw-government-on-casino-duty-rates","status":"publish","type":"station","link":"https:\/\/platogaming.com\/plato-data\/star-entertainment-signs-binding-contract-with-nsw-government-on-casino-duty-rates\/","title":{"rendered":"Star Entertainment Signs Binding Contract With NSW Government On Casino Duty Rates"},"content":{"rendered":"
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Star Entertainment Group, an Australian-based gambling and entertainment company, revealed on November 21st filling that it has officially entered into a binding contract with the New South Wales government on the casino duty rates it will have to pay during the period of the upcoming 7 years.<\/p>\n

Binding contract:<\/strong><\/p>\n

The aforementioned Star<\/strong><\/a> and the NSW<\/a> government<\/strong> formerly signed an in-principle contract<\/strong> during August of this year. However, the current binding contract<\/strong> offers better security<\/strong> for the future. This contract came to fruition, following a proposal by the previous government which included a huge increase in the duties levied on electronic gaming machines<\/strong> at the Star Sydney<\/a><\/strong> to over 60% of average poker machine income.<\/p>\n

Speaking of which, while describing the proposal that was submitted without prior discussion with The Star<\/strong>, the company commented: \u201cThe proposal is not sustainable and flawed in its design.\u201d <\/em>It also claimed that \u201cif implemented as originally proposed would significantly challenge the economic viability of The Star\u2019s Sydney business putting the jobs of thousands of NSW team members in jeopardy.\u201d<\/em><\/p>\n

However, commenting on the binding contract on the morning of November 21, Robbie Cooke<\/strong>, CEO and Managing Director of The Star<\/strong>, commented, according to Inside Asian Gaming<\/em><\/a>: \u201cThe Star appreciates the constructive engagement on this process with the current NSW Government. The formalization of these arrangements protects our Sydney<\/a> team\u2019s 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.\u201d<\/em><\/p>\n

Formalizing NSW casino duty rates:<\/strong><\/p>\n

Furthermore, as reported by The Market Herald<\/em><\/a>, the aforementioned binding contract keeps the ongoing 20.91% tax<\/strong> the firm is required to pay on poker machines, net of VAT, till the end of the financial year 2023. Additionally, the tax will increase to 21.91%<\/strong> from July 1 next year and to 22.91%<\/strong> from July 1st 2027. However, staring on July 1, 2030, the tax will officially be paid on an increasing scale<\/strong>, beginning at 37.6%<\/strong> for income from average poker machines exceeding AU$2,666<\/strong>, which is approximately US$1,737, increasing to 42.1%<\/strong> for over AU$6,667<\/strong>, which is approximately US$4.345, and to 51.6%<\/strong> for over AU$12.500<\/strong>, which is approximately US$8.145.<\/p>\n

But the firm may during that time to ask for a \u201cgood faith<\/strong>\u201c<\/em> consideration<\/strong> of the duty rate for poker machines<\/strong> and\/or connected thresholds founded on the trading circumstances and EBIT for the Sydney casino in the time frame from July 1 of this year to June 30, 2030.<\/p>\n

Other modifications that came into effect on July 1 of this year involve a growth in the customs duty on table games from 17.91% to 20.25% and on refund play from 10.0% to 12.5%. Additionally, an extra tax equivalent to 35%<\/strong> will be applied on any<\/strong> Star Sydney gaming income<\/strong> above $1.125 billion<\/strong>, which is approximately US$733 million, for every FY. In this regard, Star formerly said: \u201cWe expect the new duty rates to cost an additional AU$10 million (US$6.5 million) in 2024.\u201d<\/em><\/p>\n

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