The Star Entertainment Group Limited has just announced that the company has signed a new twenty-year tax arrangement which concerns the company’s Australia-based venues, in the first place it’s the Star Sydney property. According to the terms and conditions of this business deal, the company’s The Star Sydney facility will pay a fixed 29% tax on all of its gross gaming revenues related to mass-market gaming tables. The tax regime is active until 2041.
The Brisbane-based company used one of its latest official press releases to share more details about its new tax regime which as revealed was signed with the New South Wales government. In this particular press release, the company’s official said that its Sydney-based enterprise will pay a 27.5% tax on its gross gaming revenues generated on gaming tables up to around $529 million. This old regime remains active until the end of June 2021 when the company transitions to its new fixed 29% tax rate on its mass-market revenues on gaming tables.
The Star Entertainment Group Limited and The Star Sydney
As previously mentioned, The Star Entertainment Group Limited is a prominent Australia-based entertainment and gambling company with several iconic properties that the company operates across Australia. The firm was founded nine years ago in 2011 in Brisbane where its main office is still located. In addition to operating The Star Sydney and The Star Gold Coast venues, The Star Entertainment Group Limited also operates the Gold Coast Convention and Exhibition Centre.
The company’s The Star Sydney venue, formerly known as Star City Casino, located in Sydney opened its doors on the 13th of September in 1995. The venue is the second-largest casino facility in Australia after the iconic Crown Casino property located in Melbourne. The Star Sydney is packed with not one, but two massive gaming floors, seven restaurants, eight bars, three hundred and fifty-one hotel rooms as well as one hundred and thirty hotel suits. Besides, the property is also home to the two thousand-seat Sydney Lyric theater.
When it comes to its gaming operators, all of them are controlled and overseen by the New South Wales Casino Control Authority. Back in 2007, the casino within The Star Sydney was granted a twelve-year extension of the venue’s license and exclusivity which was extended for twenty more years recently. Speaking of the venue’s two gaming floors, they are packed with loads of traditional casino games including Sic Bo, Three Card Poker, Pai Gow Poker, Blackjack, Roulette, Baccarat, Caribbean Stud Poker as well as hundreds of slot machines.
The Star Entertainment Group the Exclusive Provider of EGMs
In one of its latest press releases, the company’s officials also shared that the company’s new twenty-year tax deal will leave the related duty on gross gaming revenues from the company’s domestic and international gaming tables unchanged at fixed 10%. Moreover, the company’s officials also revealed that the main goal in the near future is to see The Star Entertainment Group Limited becoming the exclusive provider of EGMs or electronic gaming machines in Sydney.
This would be a huge blow to the soon-to-open Crown Sydney venue which is owned and operated by the Crown Resorts Limited company that is one of the biggest competitors to The Star Entertainment Group Limited. Furthermore, the company also explained that net revenues from those one thousand and five hundred electronic gaming machines within its properties will be taxed at a fixed rate of 32% for the three following years starting from June of 2022. After June of 2020, these net revenues from electronic gaming machines will be subjected to a slightly higher 33% tax rate.