“If casinos want to lose their social licence,if they want to turn a blind eye to things like money laundering then the NSW government thinks it’s not unreasonable to expect them to make a small contribution towards floods victims. That’s entirely appropriate,” Kean said at a press conference on Friday.
The government will need to pass legislation to introduce the duty rate changes unless the casinos agree to the hikes which will see their poker machines attract a top tax rate of 60.67 per cent.
The non rebate duty rate will be increased from 17.91 to 20.25 per cent. The current 2 per cent responsible gambling levy will remain. The rebate duty rate will increase from 10 per cent to 12.5 per cent and the poker machine dutry rate will increase on a tiered schedule,peaking at 60.67 per cent for a gaming machine generating more than $12.5 thousand in monthly net revenue.
The move would also bring NSW into line with taxation rates announced in Victoria’s most recent state budget,which is more than that paid by hotels and clubs.
The Star-which has poker machine exclusivity and the bulk of table gaming market share in the state-lost more than $600 million in market value after Kean unveiled the proposal last week.
The proposal came under fire from shareholders,analysts and other industry members earlier this week with some alleging the move raised sovereign risk issues.
The Star said on Friday it is considering the proposed duty rates and how it will impact its operation. Crown was approached for comment.