Star shares climb 20% after NSW tax announcement
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More News: Shares in troubled casino operator Star Entertainment jumped more than 20% to $1.17 in early trading on the ASX after securing a tax reprieve from the NSW government. Under the new plan announced on Friday, Star will pay additional levies on gaming revenue and poker machines but at a lower rate and over a longer period than previously announced.
Star Entertainment likely to be given temporary tax respite
The news: The NSW government will issue a temporary reprieve to cash-strapped casino operator Star Entertainment Group over a tax increase, the Sydney Morning Herald reports.
The numbers: Star’s poker machines are set to be taxed at a top rate of 60.7% to generate $364 million extra revenue for the NSW government over the next three years. The company’s shares are down 63% over the last 12 months.
The context: The planned tax increase was legislated by the previous Liberal government after two inquiries and media reporting exposed suspected money laundering, large-scale fraud and foreign interference in Star's Sydney casino for years. The group has been issued multi-million dollar fines, its casino licences in NSW and Queensland were revoked and it is facing four shareholder class actions. The Sydney Morning Herald reports the current NSW government will soon announce a revised arrangement for the poker machine tax rises.
The source: Sydney Morning Herald
