Star Entertainment Group’s newly-appointed CEO Robbie Cooke has warned a proposal by the NSW government to increase the tax on pokie machines would have a damaging impact on casinos.
Star Sydney to Undergo Urgent Review if Tax Hike is Implemented
Under new changes proposed by the state, casinos would have to pay a top rate of 60.7% on revenue generated by pokie machines. If approved, the new tax system would replace the current regime wherein casinos are taxed less on pokie machines than clubs and pubs. The government is eyeing to implement the new tax rate in July 2023.
Cooke said it is unsustainable for any business to pay twice the tax rate, adding that Star Sydney could not afford to extract $100 million from its operations as a result of the new tax regime. If the government proceeds with the plan, the Pyrmont venue would undergo an “urgent review”, according to Cooke.
Star Reports $1.3 Billion Loss for Second Half of 2022
Cooke made the remarks as he announced that Star suffered a net loss after tax of $1.3 billion for the six months to December 2022, with the proposed tax increase among the reasons for the slump.
Star Entertainment was hit with a massive money laundering scandal leading to two separate inquiries in NSW and Queensland, both of which found the company unfit to hold a gaming license.
