While the Australian casino sector has been having a hard time of things lately, Star Entertainment has finally gotten some positive news. It has received an AU$310m (US$201.5m) tax break in New South Wales (NSW) after the Labor government confirmed it does not plan to hike duties on casino slot machines to the same levels as Victoria until 2030.
In return for this tax break, Star Entertainment will guarantee 3,000 jobs for the next seven years and will also run a trial for cashless gambling on certain slot machines and table games before the end of October. Its share price jumped 18% on the back of the news.
would have led to a rate almost as high as 61%
The previous coalition government was planning to make tax changes in line with those in Victoria by the start of July 2023, which would have led to a rate almost as high as 61%.
Some of those people who were against such a move believed that Star would not have been able to survive if this tax increase went ahead. The company has lost over AU$3bn in market value over the last two years as a result of government probes which led to over AU$350m (US$227.5m) in fines. The casino owner believes the seven-year transition period will help it get back to a good level of operations.