Casino operators in New South Wales (NSW), Australia, are facing increased tax obligations. Star Entertainment and Crown Resorts have agreed to revised tax arrangements with the state government, resulting in higher taxes. The changes will impact the tax rates for slot machines and table game revenue, with a retroactive effective date of July 1, 2023. As part of the agreement, Star will also introduce a sliding scale for the tax rate from July 1, 2030. This will affect the bottom line of the operators, independent of recent point of consumption tax changes.
Additionally, new legislation is set to safeguard the employment of thousands of workers at The Star, ensuring their livelihoods for the next six years. The move comes after consultations by the Minns Labor government, demonstrating the impact of the tax increases on the operators’ operations.
The changes are part of a lifeline for the casino industry in NSW, following a proposed spontaneous tax increase by the former government without prior consultation with Star or Crown. The post will have ramifications for the operators’ bottom lines and the state’s tax revenue. Adhering to the heightened tax obligations will impact the operators’ financial standings, further emphasizing the importance of strategic tax planning for the gambling industry.