In New South Wales (NSW), the conversation surrounding the NSW government’s proposed casino tax rate increases has started to invoke real trepidation amongst industry leaders, especially after Star Entertainment Group gave grim projections earlier this month for its Star Sydney casino, saying that the increases pose a threat to the property’s financial future.
Now, Dario Mujkic, executive director for the influential United Workers Union, has echoed those sentiments, telling the Sydney Morning Herald that the tax hikes will cause a large number of casino employees in the state to lose their jobs.
Mujkic referenced NSW Treasurer Matt Kean, who has championed the proposed hikes, saying that he “hasn’t clearly thought through the potential impact of the proposed tax change on business operations and more importantly the workforce.”
“It’s time for the NSW treasurer to sit down and properly engage with The Star and the United Workers Union, repair the damage that has already been done, and agree on a path forward that is reasonable and does not put jobs at risk in any way,” Mujkic told the Herald.
The biggest topic of concern for those involved has to do with the increased tax rate on casino-owned electronic poker machines (or “pokies”); under the proposed changes, which would take effect July 1 if enacted, that rate would be set at a whopping 60.67 percent.
This is despite the fact that Star and the NSW government already signed a 20-year agreement back in 2020 that capped the tax rate at 32 percent through 2024, then to 33 percent through 2027 and finally to 34 percent for the subsequent 14 years.
Star and fellow operator Crown Resorts have also lamented the fact that the increases only affect casino-owned machines, which account for less than five percent of the overall machine count in the state. The rest are scattered among bars and clubs, which would undoubtedly benefit from the increased business.
Pokies have been a topic of heated debate throughout the state since October of last year, when the NSW Crime Commission released a scathing report alleging that billions of dollars were being laundered and gambled through pokies by criminals each year.
Premier Dominic Perrottet and his cabinet have since vowed to mandate cashless play for all machines, which has proved controversial among industry figures. Some have alleged that the proposed tax increases are an indirect attempt to start eradicating the machines altogether.
In its recent report detailing the uncertainties of Star Sydney, Star posited that “If implemented in their current form, the proposed duty rate increases would have a significant adverse impact on the profitability of The Star Sydney.”
