The Star Sydney Hotel & Casino signs new 20-year tax agreement with EGM exclusivity
Australian gambling and entertainment giant “The Star Entertainment Group Ltd” has confirmed that it has signed a 20-year arrangement that will enable The Star Sydney Hotel & Casino to pay a flat 29 percent tax on all revenues from its mass-market gaming tables for the next twenty years.
In an official press release, the Brisbane-based casino operator explained that the agreement was signed with the government of New South Wales, and added that it would run through to the middle of 2041.
The Star Sydney venue will continue to pay a 27.5 percent tax on all mass-market gaming table revenues of up to $529 million through June next year before transitioning to the new flat 29 percent rate.
The casino operator also stated that the new tax agreement will leave the duty on revenues from The Star Sydney Hotel & Casino’s global and domestic VIP gaming tables untouched at 10 percent. The agreement is expected to help the entertainment venue in this time of need as the deadly corona virus pandemic has hit casino businesses really hard.
The agreement will also provide the casino with complete control over electronic gaming machines
(EGMs), thanks to exclusive rights. With the signing of the agreement, the Star Sydney has become the exclusive casino provider of EGMs in the two-casino Sydney market. It is worth-mentioning here that the deal may hurt the domestic rival Crown Resorts Ltd’s soon-to-open Crown Sydney entertainment venue.
A statement released by the Star Entertainment Group reads, “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.”
The Star Entertainment Group stressed that the newly signed agreement will enhance regulatory certainty, which would help the company run its operations smoothly and straightforwardly.
The Star Sydney venue, which came into existence in 1995, recorded domestic revenues of $672 million during 2019 and was taxed at an average rate of 31.5 percent. However, the Australian entertainment venue is expected to suffer a steep decline in revenues this year as it has been closed since 23rd of March as a direct result of the ongoing COVID-19 pandemic.
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