The Star Entertainment Group has announced an agreement in principle with The Honourable Daniel Mookhey MLC, the New South Wales (NSW) Treasurer, to revise its duty arrangements with the state.
The Star has continually maintained that the proposed tariff hike by the previous Treasurer was impractical and had design flaws.
If carried out as intended, it would have posed a serious threat to the financial viability of The Star Sydney's operations, risking the jobs of countless NSW team members.
The agreement in principle was made to address the circumstances surrounding The Star Sydney's operations, even though it will result in an increase in duties that must be paid to the state.
This strategy aims to offer a viable future direction while preserving the jobs of the Sydney team members.
Robbie Cooke, the Star’s CEO and Managing Director, 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.
"The expected additional duty payable in FY24 is circa AU$10m (US$6.5m). In addition, it will see The Star Sydney introduce a trial of its cashless gaming machine technology in October this year."
An additional update on The Star's proposed refinancing of its existing debt funding arrangements will be made once the uncertainty surrounding NSW casino duty rates has been resolved.
Meanwhile, in June, the NSW government announced in a media release that it intends to pursue legislation that will result in higher casino tax rates. The Star responded by labelling the announcement "ill-conceived".
