Star wins NSW tax moratorium, loses charter hole over Brisbane deal
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The New South Wales (NSW) government has delayed a tax hike on gaming revenue announced for Star Entertainment's Sydney casino less than two weeks before the start of the new tax rate, according to a report in the Australian Financial Review. At the same time, one of Australia's leading casino companies reported that Brisbane sales contracts with property trust Charter Hall were cancelled due to another delay in project development.
Cancellation of Treasury Sales Contract:
Under the 2021 sales agreement, Charter Hall was supposed to pay $248 million for a Treasury casino and hotel building complete with parking and lease to Star for more than 30 years. However, on June 20, 2023, Charterhall reportedly said it would withdraw from the deal because the terms of the deal were not met by the contract deadline, but this is not the only project causing additional problems for Star.
Queens Wharf Casino Project Delay:
According to The Australian Financial Review, Star's new Queen's Wharf Casino project in Brisbane has been postponed four times in the past 18 months and is currently scheduled to launch in April 2024. The $3.6 billion project is designed to include four luxury hotels to replace the Treasury Department. As a result of these developments, Starr's stock price fell 3.2% to $1.06 on June 20, a drop of 36% year-over-year.
Facing an increase in game tax:
Star Entertainment is facing financial problems due to its failure to comply with anti-money laundering laws and a series of financial violations that have caused financial regulators to take legal action over the past 12 months. In addition, the company expects a major tax increase from the NSW government, which has definitely affected Starr's current project.
Postponement of tax application:
The NSW government has considered a new tax system and has postponed each bill "until at least August," according to the same source. The tax increase will affect Star Resorts and Crown Resorts and is reportedly aiming to collect $364 million from these companies by 2026 through levies on poker machines and gambling tables. 바카라
Starr CEO Robbie Cook reportedly said the proposed tax increase was "misguided without consultation and unrelated to the capabilities of the Sydney business." Cook added: "If implemented as originally proposed, that additional obligation would pose significant challenges to the economics of Sydney's operations and put the jobs of up to 4000 hardworking Sydney employees at risk."
Cancellation of Treasury Sales Contract:
Under the 2021 sales agreement, Charter Hall was supposed to pay $248 million for a Treasury casino and hotel building complete with parking and lease to Star for more than 30 years. However, on June 20, 2023, Charterhall reportedly said it would withdraw from the deal because the terms of the deal were not met by the contract deadline, but this is not the only project causing additional problems for Star.
Queens Wharf Casino Project Delay:
According to The Australian Financial Review, Star's new Queen's Wharf Casino project in Brisbane has been postponed four times in the past 18 months and is currently scheduled to launch in April 2024. The $3.6 billion project is designed to include four luxury hotels to replace the Treasury Department. As a result of these developments, Starr's stock price fell 3.2% to $1.06 on June 20, a drop of 36% year-over-year.
Facing an increase in game tax:
Star Entertainment is facing financial problems due to its failure to comply with anti-money laundering laws and a series of financial violations that have caused financial regulators to take legal action over the past 12 months. In addition, the company expects a major tax increase from the NSW government, which has definitely affected Starr's current project.
Postponement of tax application:
The NSW government has considered a new tax system and has postponed each bill "until at least August," according to the same source. The tax increase will affect Star Resorts and Crown Resorts and is reportedly aiming to collect $364 million from these companies by 2026 through levies on poker machines and gambling tables. 바카라
Starr CEO Robbie Cook reportedly said the proposed tax increase was "misguided without consultation and unrelated to the capabilities of the Sydney business." Cook added: "If implemented as originally proposed, that additional obligation would pose significant challenges to the economics of Sydney's operations and put the jobs of up to 4000 hardworking Sydney employees at risk."
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