The New Taxation on Gambling
In the past few days, Star Casino stock has fallen on news that the New South Wales government is considering implementing taxes on casinos.
In response to Saturday’s press statement from New South Wales Treasurer Matt Kean, in which Kean proposed increasing taxes on casinos’ table games and gambling machines beginning on July 1, 2023, Star Casino issued the following statement. Within its first three years of implementation, this initiative is projected to bring in $364 million for the government.
Star Casino Groups Response
The Star Casino Group has said that it will be “urgently engaging” with the New South Wales Government to discuss the “sustainability” of any prospective tax reforms and their effect on the business. Director of Operations Robbie Cooke said that they don’t know what financial structure the government used or what evidence they have that The Star establishment is not paying its fair amount of taxes.
In particular, once all tax systems are taken into account, The Star establishment has paid as much as 80% of its income in taxes in the last five years. This is in addition to the millions of dollars it pays in state gaming taxes and corporation taxes.
In an effort to “provide safe and secure gambling, Star Casino has emphasized its desire to expedite contactless wagering and carded play.
Statement of Minister Kean
Minister Kean, has stated that the planned modifications will help casinos maintain an “appropriate contribution” to society. Finally, he elaborated by saying that gambling establishments should pay their share of taxes. These new rates would replace the current system, under which gambling establishments would pay a lower tax rate on gambling machines when compared to other locations such as clubs and hotels.
The Share Price Star Casino Right Now
In a year’s time, the stock price has dropped by 35%. Shares of Star Casino have dropped by 21.75 per cent during the previous 30 days.
According to the current stock price, the Star Casino establishment does have a market capitalization of almost $2.2 billion.
Are Other Casinos Happy With This Regulation?
Well, not really. Due to this proposed tax law, many casinos may lose quite a lot of money. They already pay taxes, so the increased percentage of taxes to be given would be detrimental to the businesses.
This is one of the reasons Sky Casino is speaking up, as they feel that with this new taxation percentage, online casinos such as themselves will have a massive impact on their operations.