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The Star enters agreement to formalise NSW casino duty rates

ASX News, Consumer Discretionary
ASX:SGR      MCAP $1.290B
21 November 2023 10:57 (AEST)

The Star Entertainment Group

The Star Entertainment Group (ASX:SGR) has entered a binding agreement with the NSW Government on casino duty rates.

The formalised duty rate amendments with the NSW Government follow the in-principle agreement announced on August 11.

Starting from July 1, 2023, the duty rate for rebate play will see an increase from 10.0 per cent to 12.5 per cent. This adjustment aims to balance the financial dynamics associated with this gaming category.

Non-rebate play duty rates for table games are set to rise from 17.91 per cent to 20.25 per cent, effective at the same time.

The current poker machine duty rates will remain unchanged until June 30, 2030.

Post-June 30, 2030, a tiered structure based on the average poker machine revenue (APMR) will be implemented, ranging from 0 per cent to 51.6 per cent.

The Star may request a review of these rates before September 30, 2030, considering trading conditions and EBIT.

Between July 1, 2023, and June 30, 2030, an additional levy equal to 35 per cent of Star Sydney gaming revenue exceeding $1.125 billion will be applied annually.

“The Star appreciates the constructive engagement on this process with the current NSW Government,” SGR CEO and Managing Director Robbie Cook said.

The Star reiterated its commitment to protecting its Sydney team’s jobs and earning the trust back from the shareholders.

The Star last traded at 55.8 cents.

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