Game on as The Star reopens, inks tax deal
Fine dining, private gaming rooms start casino’s comeback
THE Star Entertainment Group announced it was reopening private gaming rooms and up to 12 food and beverage venues from yesterday at its Sydney property, following consultation with the NSW Government.
The initial reopening is limited to up to 500 loyalty club members on an invitation-only basis, while up to 50 seated customers will be allowed at the fine dining restaurants and other food venues at The Star Sydney.
The company said it would welcome back a material number of employees as the first step in the reopening, but restrictions meant business volumes would be significantly below normal levels.
“We are focused on conservatively managing the business to provide us with the confidence for the next stage of returning our properties to more normal conditions as restrictions unwind,” chief executive officer Matt Bekier said.
The company had stood down about 90 per cent of its workforce, or about 8100 staff, following the closure of its food, beverage, conferencing, and gaming facilities in late March after the government imposed social restrictions to check the spread of coronavirus.
The Star also said separately it had entered into a new 20-year agreement on gaming taxes with the NSW Government comprising flat rates of tax as a percentage of revenue.
The agreement preserves The Star Sydney as the exclusive provider of electronic gaming machines in the two-casino Sydney market, the group said.
“The Star will be entitled to financial compensation from the NSW Government should EGMs be installed at Crown Sydney at any time until 30 June 2041,” The Star said.
The Star will also be entitled to compensation if there are changes to the regulatory arrangements on the casino, such as a reduction in operating hours or limits on jackpots, prizes and tables.
Under the arrangement, The Star will pay the NSW Government a flat tax rate of 32 per cent of all domestic EGM revenue from fiscal 2022 to 2024, 33 per cent for the next three years and 34 per cent for the 14 years after that.