In Australia and local casino operator The Star Entertainment Group Limited has announced the signing of a 20-year arrangement that is to see its The Star Sydney venue pay a flat 29% tax on all revenues from its mass-market gaming tables through to the middle of 2041.
The Brisbane-headquartered firm used an official press release to detail that the agreement inked with the government of New South Wales will involve its Sydney enterprise continuing to pay a 27.5% tax on all mass-market gaming table revenues up to $529 million through to the end of next June before transitioning to the new 29% rate.
The Star Entertainment Group opened The Star Sydney in 1995 with the 351-room venue said to have recorded domestic revenues of approximately $672 million last year taxed at an average rate of 31.5%. The Australian firm revealed that the property has been shut since March 23 as a direct result of the ongoing coronavirus pandemic but is due to begin partially re-opening some of its operations from later today.
The Sydney-listed operator moreover used the press release (pdf) to state that the new tax deal is to leave the associated duty on revenues from The Star Sydney’s international and domestic VIP gaming tables unchanged at 10% and entitle the development to ‘financial compensation’ should the government of New South Wales materially alter ‘key regulatory arrangements’.
The Star Entertainment Group Limited proclaimed that the understanding is furthermore due to see The Star Sydney become ‘the exclusive casino provider of electronic gaming machines (EGMs) in the two-casino Sydney market’ at the expense of the soon-to-open Crown Sydney facility from domestic rival Crown Resorts Limited.
In return for this latter portion of the understanding, the company explained that revenues from the around 1,500 EGMs within The Star Sydney are set to be taxed at a rate of 32% for the three years from June of 2022 before being subjected to a higher 33% duty for the fiscal periods associated with 2025, 2026 and 2027. The Star Entertainment Group Limited additionally declared that the covenant will ‘enhance regulatory certainty’ and is to involve this ratio subsequently rising to 34% for the 14 years from July of 2029.
Read a statement from The Star Entertainment Group Limited…
“The Star Sydney will continue to be the exclusive casino provider of EGMs under the current casino licencing arrangements in the Sydney market. The Star Sydney will be entitled to financial compensation from the government of New South Wales should EGMs be installed at Crown Sydney at any time until June 30, 2041.”