Crown Resorts dealt out of pokie deal in Sydney
Crown Resorts has been dealt a blow as rival Star Entertainment was granted sole rights to offer pokie machines in their Sydney casino until at least 2041.
The decision by the NSW Government has left Crown’s casino in Barangaroo without an important revenue stream, which is set to be crimped by an ongoing travel ban on international travel and a crackdown on high rollers by the Chinese Government.
Under the new tax arrangement with the NSW government, Star pays the same duty rate on table games as Crown, ensuring competitive neutrality.
“The Star has agreed flat domestic gaming tax rates with the NSW government for a 20-year period,” Star said in a statement to the ASX. “All rebate gaming revenue will continue to be taxed at a flat rate of 10 per cent, consistent with current arrangements.”
NSW Treasury said in a statement that funds raised would be “directed towards vital infrastructure and essential services across the state”.
“The agreement will allow long-term revenue certainty for the NSW Government and contribute billions of dollars to be directed to important projects,” NSW Treasury said.
“The new agreement also provides regulatory certainty for The Star, which enables them to continue to invest in their NSW business, which is a key contributor to Sydney’s tourism and entertainment industries.”
Star Entertainment said it would be entitled to compensation from taxpayers if the NSW government backflipped on the deal further down the line.
“The Star will be entitled to financial compensation from the NSW government should EGMs (electronic gambling machines) be installed at Crown Sydney at any time until June 30, 2041,” the group stated.
Sheridan Randall, 10th June 2020
