NSW lays plans for increased casino tax levies
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The year 2022 will be remembered as one that brought around cataclysmic upheavals in the gambling industry in Australia. New South Wales is making sure another big change is pushed through before the year is out, with the introduction of the overhauled tax rate to apply for the Crown Sydney and Star Sydney casinos in the state.
Both properties were the subject of lengthy investigations that unearthed shortcomings in the companies’ operational models and eventually found them unsuitable to hold licenses. Now, a new tax rate is set to levy the gaming tables and slots, referred to as poker machines or pokies in Australia, before long.
The exact rate is not yet publicly available, but NSW Treasurer Matt Kean is confident that the changes will help offset the impact of the pandemic, and further help with relieving the damage caused by natural disasters, such as floods and bushfires. Kean is adamant about the new measures, arguing that it’s of the utmost importance that casinos pay the appropriate amounts.
The issue the new rules seek to address is the current regulation that allows casinos to pay less than clubs and hotels when it comes to their poker machines. Thanks to the new taxation rules, the government will be able to deliver on vital services, Kean assured. It’s not just that, though.
The NSW government is also planning to spend at least $33m during the 2022-2023 financial year in order to boost the Responsible Gambling Fund and help people who may be suffering from gambling-related harm and need assistance. Part of the money will go to treating the issue and another – to raising awareness for the problem and hopefully preventing its manifestation in the first place.
However, the matter is not necessarily welcomed by all, and Star Entertainment Group has offered objections to the way the new tax implementation was pitched. For one, the company complains about the lack of backchannelcommunication between the casino companies the tax would impact and the government.
Star confirmed that it would need to reach out to the NSWgovernment and ensure that officials and the company see eye-to-eye when it comes to the sustainability of these new changes which may further suppress the company’s ability to operate. Robbie Cooke, Star Chief Executive and MD, said that the company failed to comprehend the government’s claim that Star did not pay a fair share of tax.
Meanwhile, Star Entertainment Group’s stock dropped by 11% on Monday on the news of the new government introducing changes to taxation. The stock is likely to bounce back, although the company is undergoing serious challenges in New South Wales, including license suspension and AU$100m ($62.37m) fine. The government in New South Wales is also determined to push ahead with other reforms, including the inclusion of cashless payment methods for gambling venues, another measure that has been resisted by different industry stakeholders.
