The negotiated arrangement will legally require Star to maintain more than 3000 jobs between now and 2030;while the casino will participate in the state’s cashless gaming trial,with 50 poker machines and eight tables in high-volume areas to go cashless from October this year. The Star’s share price opened more than 20 per cent higher to reach $1.14 following the announcement.
The transitional tax arrangement on gambling machines will apply until the new rate begins in July 2030. The transitional casino duty rates are expected to generate $2.7 billion over 10 years from Star,more than half a billion more than they would under the previous rate.
The levy will be pegged to The Star’s financial performance,with the government collecting more tax under adjusted rates if the casino outperforms forecasts.
In a statement confirming the new arrangement on Friday,Mookhey said the previous government’s casino duty hike was “unrealistic,poorly developed and put thousands of jobs at risk”.
“It was announced without consultation or consideration for the viability of the business and the thousands of workers they employ,” he said.
“The advice I received from NSW Treasury is that absent this agreement,if the government proceeded with the announced rates,The Star would be unviable.”
Two months ago,Mookhey delayed legislation for the duty rate increase that would have been imposed on the profits from poker machines and table game earnings in the casino from July.