In a significant move affecting the
real money casino industry in New South Wales, the NSW Government has announced that major players, The Star and Crown Casino, have agreed to revised tax arrangements. The New South Wales (NSW) Government recently made a significant announcement that has implications for the state's gaming industry.The Star and Crown Casino have agreed to new tax arrangements that will see them pay higher taxes to the government. Company reasurer Daniel Mookhey signed these agreements, marking a significant step in reshaping the casino industry's financial landscape in NSW.
What Are the Key Changes?
Under the new casino agreements, several key changes have been outlined:
- Table Rates Increase: Both The Star and Crown Casino will see their table rates rise, and this change is backdated to 1 July 2023. This increase in table rates will have a direct impact on the revenue generated by these casinos from their table games.
- Transitional Levy on Poker Machines: The Star Casino will pay a "transitional levy on poker machines until a new duty regime commences on 1 July 2030." This levy is expected to contribute significantly to the state's tax revenue over the next few years.
- Job Protection at The Star: Thousands of jobs at The Star will be protected as part of these agreements. The government is taking steps to ensure that the livelihoods of more than 3000 workers at The Star are safeguarded over the next six years.
It's important to note that no changes have been made to the agreements Crown Casino previously signed with the previous government. The government's focus is primarily on reshaping its relationship with The Star, given the changes in tax obligations and the emphasis on job protection.
The Backstory
The roots of these casino tax increases can be traced back to the previous government's announcement in December 2022. However, it's worth noting that these increases were made without consultation with Sydney's two major casinos, The Star and Crown. The initial announcement did not lead to legislative changes but was included in the NSW Budget.
The Minns Labor government's approach has been markedly different. Consultation and engagement with the casino operators have been at the forefront of their strategy. This approach has yielded results, as both The Star and Crown have agreed to comply with the increased tax obligations, as outlined in the new agreements.
Treasurer's Perspective
Treasurer Daniel Mookhey shared his thoughts on the matter, highlighting the challenges inherited from the previous government's handling of casino policy. He stated, "The previous government had bungled their casinos policy. It was one of the most difficult challenges I inherited. These arrangements will see both casinos pay higher taxes."
Mookhey also emphasized the positive impact these changes will have on job security at The Star, saying, "The government can now proceed with legislation which will see more than 3000 workers have their jobs protected at The Star."
In addition, Mookhey acknowledged the challenges faced by Crown Casino, stating, "I note Crown has made it clear that recent job losses arise from their trading conditions." The government remains committed to engaging with both casino operators and worker representatives to ensure the sustainability of their businesses.
What's Next?
With the agreements in place, the NSW Government is taking steps to introduce legislation that will create a jobs guarantee at The Star. This guarantee is aimed at protecting the livelihoods of more than 3000 workers at the casino over the next six years.
It's important to mention that these developments are part of a broader fiscal strategy by the Minns Labor government. S&P Global has affirmed NSW's AA+ credit rating with a stable outlook, which is seen as an endorsement of the government's approach to fiscal repair.
In conclusion, the recent agreements between the NSW Government, The Star, and Crown Casino mark a significant milestone in reshaping the taxation landscape for casinos in the state. These changes are not only expected to boost the government's revenue but also provide job security for thousands of workers in the industry. As the casinos navigate these new tax arrangements, ongoing engagement and collaboration with the government will be crucial to ensuring their success.
