New South Wales gambling law changes have prominent union worried

The investigations that probed some of the biggest gambling companies in New South Wales (NSW) over failures to comply with industry standards have had significant reverberations in the sector. In fact, the impact can still be felt as the state’s government is debating to introduce a new proposed tax with casino duty rates possibly changing in the summer.

This rate is still not set – nor has a final decision been made. One option is that the low end of the proposed tax changes would actually not increase the duty at all. The Star Entertainment, one of the most seriously embattled gambling companies in NSW, has cautioned that even without this type of tax increase, the property is already stressing over mounting regulatory pressure.

Should a full implementation of the new proposed tax come into effect, The Star Sydney would need to foot a bill of AU$1.6bn or some $1.1bn at current trading rates.

Now, United Workers Unions executive director Dario Mujkic spoke to The Sydney Morning Herald and said that the government’s determination to hold Star accountable for previous transgressions, and implement punishment, could impact casino workers and leave many people out of a job, should the increase in casino duty rates come into effect on July 1, 2023, coinciding with the Star’s FY2024.

Mujkic said that the government should listen to the gambling company instead, sit down, and try to determine what changes can be effectuated so that the industry moves towards a more sustainable and responsible future while also ensuring the government officials have workers’ best interests in mind.

Interestingly, the proposed 60.67% tax rate would override the previously negotiated taxation rates which were established under a 20-year deal and that should have seen electronic gambling machines (EGMs) at The Star in NSW be taxed at an increased rate between 2022 and 2027, from 32% to 34%. Doubling the rates – as the tax proposes – could seriously impede The Star’s ability to offer local workers jobs.

The property is already scrambling to figure out a way to react to such a robust increase in its taxation, should one come to pass. Mujkic though has a point to worry about. It seems disproportionate to double the rate of taxation for The Star’s EGMs rather than focus on ensuring that the industry is more transparent in general. Putting this kind of pressure on The Star would make the company more likely to fault if anything.

"It’s time for the NSW treasurer to sit down and properly engage with The Star and the United Workers Union, repair the damage that has already been done," Mujkic concluded.

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