8 Apr, 2024
After the NSW government proposed a tax increase, shares of The Star Entertainment fell by 12 percent.
Any changes to Sydney's gaming taxes that become law in July 2023 would have an impact on the company's activities in that city. Half of The Star's income in FY2022 came from The Star Sydney, so these tax changes might bring in an extra AU$364m (US$244.2m) over the next three years.
State Treasurer Matt Kean said the funds will be used to pay for things like helping people get back on their feet after disasters like Covid-19, fires, and floods.
He said, "Casinos should pay their dues in terms of taxes. The current scheme, in which casinos pay less tax on poker machines than hotels and clubs, will be replaced by these revised tax rates.
According to Reuters, the company's stock price has hit a new low not seen since April 23, 2020.
"We are not sure how the Government modelled its financials or the basis for suggesting The Star does not pay its fair share of taxes," said Robbie Cooke, CEO and Managing Director of The Star.
In particular, "in addition to state gaming taxes, The Star also pays millions in corporate taxes," and "when all the tax regimes are considered, The Star's total taxes paid as a percentage of its profits is around 70%, and as high as 80% in the last five years."
After being fined AU$100 million and having its licence suspended, The Star casino in Sydney confirmed in October 2022 that it will continue to operate.
