The Star Entertainment Group has reacted to a media release by the New South Wales (NSW) Government, which states that it plans to pursue legislation that will see casino tax rates increase, calling the move “ill-conceived.”
The rate increase has come as an inherited policy from the former NSW Government, with the incumbent Government pursuing the policy that would have originally seen the rates increase on 1 July.
However, following discussions with casinos, the new Government plans to legislate the increase once the winter recess has concluded.
The Star’s CEO, Robbie Cooke, lambasted the potential casino duty rate increases, stating: “This proposed duty increase was policy on the run by the former Treasurer, and was ill-conceived with no consultation and had no regard to the capacity of our Sydney operation to afford the impost.
“If implemented as originally proposed, the additional duty would significantly challenge the economic viability of the Sydney business and put the jobs of up to 4,000 hard-working Sydney employees in jeopardy.”
However, The Star’s statement did also note that it ‘appreciates the engagement to date by the current NSW Government.’
Furthermore, the bad news keeps on coming for The Star, as it was also revealed that its proposed sale and leaseback transaction with Charter Hall for its Treasury Casino and Hotel would not be going forward.
Charter Hall has pulled out of the deal, as it believes that the conditions for the sale have not been met by the contracted date, which it further declined to extend.
