The Star Entertainment Group has solidified its agreement with the New South Wales (NSW) Government concerning duty rate adjustments for casinos.
The announcement, stemming from the previous in-principle agreement revealed in August 2023, confirms the binding documentation between The Star and the NSW Treasurer, Daniel Mookhey MLC, formalising the duty amendments.
Outlined in Annexure A, the revisions in duty rates align with the previously outlined changes announced in August 2023. Key modifications include increased duty rates for Rebate Play, Non-Rebate Play in Table Games and adjusted rates for Poker Machines over specified periods until 2030.
Robbie Cooke, CEO and Managing Director of The Star, stated: “The formalisation of these arrangements protects our Sydney team’s 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.”
The alterations in duty rates encompass a rise in Rebate Play duty from 10.0% to 12.5% effective 1st July 2023. Similarly, the Non-Rebate Play duty for Table Games escalates from 17.91% to 20.25% as of the same date.
Pertaining to Poker Machines, the duty rates remain unchanged until 30th June 2030. Post-2030, a tiered system based on Average Poker Machine Revenue (APMR) at The Star Sydney will apply. This model features varied duty rates based on revenue thresholds.
Additionally, a specified Additional Levy will be enforced between 1st July 2023 and 30th June 2030, for Star Sydney gaming revenue surpassing $1.125bn annually.
This formalisation follows The Star Entertainment Group’s earlier initiatives this year, including a substantial capital restructuring and refinancing strategy unveiled in September. The company navigated through financial challenges, evident in its statutory net loss of AU$2.44bn (US$1.57bn) for FY23, attributed to regulatory fines and restructuring costs.
