Late last year, the former Treasurer of New South Wales (NSW), proposed a change to the taxation for casino operators, pushing for an increase in casino duty rate. Although it wasn’t implemented, the proposal stuck around with the lawmakers following the recent election in NSW. In light of discussions with the local government for the increase in casino duty rates, The Star Entertainment released a new statement Tuesday outlining its concerns.
The Star’s managing director and CEO, Robbie Cooke, criticized the proposed duty rates increase, explaining that it was introduced by the former Treasurer without the necessary consultations. Moreover, he explained that the proposed casino duty rates do not consider the impact on The Star’s Sydney operations.
Cooke noted that the proposed duty rates are likely to bring significant economic challenges for the company’s Sydney business. At the same time, he warned that those rates may ultimately threaten the jobs of some 4,000 of The Star’s Sydney employees.
“This proposed duty increase was policy on the run by the former Treasurer, was ill-conceived with no consultation and had no regard to the capacity of our Sydney operation to afford the impost. If implemented as originally proposed, the additional duty would significantly challenge the economic viability of the Sydney business and put the jobs of up to 4,000 hard-working Sydney employees in jeopardy.“
Robbie Cooke, managing director and CEO at The Star
While Talks Continue, Charter Hall Transaction Halts
The managing director and CEO confirmed that The Star will continue its discussions with the NSW Government. Ultimately, according to Cooke, the company seeks to “guarantee the jobs” of its team members. Additionally, he said that The Star continues to follow its plan for reforms for its “suitability and to ensure it remains a valuable contributor to the NSW economy.”
The recent statement released by The Star pointed out that the company “appreciates the engagement to date by the current NSW Government.” It also said that it will continue to collaborate with the local government, as well as the NSW Treasury and support a proposal that seeks to protect the future of its employees in Sydney.
The criticism and concerns shared by The Star coincided with a separate announcement made by the company Tuesday. The company said that its plan for a sale and partial leaseback transaction with Charter Hall regarding the Treasury Casino and Hotel buildings and the Queen’s Gardens Car Park, would not be going ahead. In a separate statement released by The Star, it said that Charter Hall confirmed it is no longer interested in going ahead with the transaction.