casino gambling

$500 Million for New South Wales from Star City Casino

The renewal of TABCorp-owned Star City's exclusive casino operating licence is expected to bring in an estimated $500 million in operating fees for the State Government.

The new licence replaces Tabcorp's previous deal with the State, which took effect in December 1994 for $376 million, good for 12 years.

Sources said the government is asking for a similar up-front payment as in the 1994 to secure the exclusive licence and ensure smooth implementation.

Both camps are still negotiating on the up-front payment, along with other deal details, such as Star City casino's amazing poker tax rate and exemption from the implementation of smoking ban in the high-rollers' room.

Poker tax rate for the biggest pubs and the biggest clubs are 59.09% and 39.99% respectively. On the other hand, Star City is currently shelling out just 24.5% for the poker tax rate, a portion that already includes a 2% community payment.

In previous interviews, the casino has explained that the very low tax rate was compensation for the up-front fee it paid in 1994. Further, the casino had to compete against interstate casinos which also had lower tax rates than pubs and clubs.

In the most recent financial year, Star City collected an estimated $500 million in revenue from poker machines and tables alone.