On July 1st, 2023, casinos in Sydney were set to become subject to a tax increase but the implementation of the measure has been put off until August.
In 2022, the former state Government unveiled plans to make The Crown and The Star casinos in Sydney pay bigger taxes, with the move expected to generate about AU$364 million in three years. At the time, the announcement caused a severe share price drop for Star Entertainment and contributed to what was described by Chief Executive Officer Robbie Cooke as an “issued rich” situation for the Australian casino giant.
Earlier this week, while speaking on ABC Radio Sydney, Treasurer Daniel Mookhey noted that despite the Government of Premier Perrottet budgeted for the new tax rates for the casino operators in Sydney, the changes remained unlegislated. He further explained that the delay was needed because the former lawmakers had not managed to establish an effective relationship with the casinos about the planned changes as the businesses that would be affected by the altered taxes would have to bring reforms to their business models in order to make sure they are fully compliant with the state laws.
Mr Mookhey revealed that he had met with the casino leadership teams since being appointed as the state Treasurer.
The decision for the tax implementation delay has been welcomed by the Star Entertainment Group which noted that the proposed tax increases of the former NSW Government were unsustainable. The other gambling giant that is set to be affected by the legislative change – Crown Resorts – shared that it continues to engage with the Government of New South Wales on the proposed changes regarding the aforementioned casino tax.
NSW Casino Bosses Could Be Exaggerating the Risks, Gambling Researcher Says
Treasurer Mookhey was set to bring a budget update to Parliament on June 20th in order to outline the position of the New South Wales’ Government ahead of the budget proper in September. At the time, he noted that the former Government’s spending following the Covid-19 pandemic outbreak resulted in putting the state in an uncertain financial position by adding AU$33 billion of expenditure to the budget.
Monash University’s Professor and gambling researcher Charles Livingstone has commented on the decision of the current Government to delay the implementation of the higher tax, describing it as a strange move, especially considering the unstable financial situation of the state. According to him, favouring a casino that had just been disgraced for multiple wrongdoings and law violations has not been exactly the right thing to do.
Mr Livingstone shared that, in his opinion, casino bosses were exaggerating the risks associated with the higher tax in order to maintain an advantage over other gambling venues that operate in the region.
On the other hand, avid anti-gambling campaigner Tim Costello shared that he was not surprised by the NSW Government’s decision to delay the implementation of the casino tax increase but was disappointed with it, especially for the state’s taxpayers.
- Author
Daniel Williams
