Al-anwar Newspaper English news in Australia
A war has broken out between Dominic Perrottet and ClubsNSW over a deal that will save The Star Casino $1 billion in taxes at the time he claimed he was “uncomfortable” about gambling revenue.
Mr Perrottet said last week he was “uncomfortable” during his time as treasurer at the amount of money generated from “taxing on the misery of others” through poker machines.
But The Daily Telegraph can reveal that during his time as treasurer Mr Perrottet signed off on a favourable tax deal with The Star that will save the casino more than $1 billion in tax on gambling revenue.
A gambling industry insider said: “It is utter hypocrisy for the Premier to say he worried about gambling while signing away billions of dollars of taxpayer money to a casino.”
Analysis of the deal reveals that if gaming at The Star returns to pre-Covid levels and grows by a modest three per cent a year it will save more than $1 billion compared to the previous marginal tax rate agreement.
The carefully buried document also reveals that The Star pays substantially less tax on poker machine revenue than hotels or not for profit clubs.
ClubsNSW chief executive Josh Landis said: “It is inexplicable why The Star should pay a lower rate of tax than clubs.” “Clubs are not for profit organisations that return the money they make to the community while The Star is a casino that delivers the profits it makes to wealthy shareholders.”
Marcelo Veloz, chief executive of the City Tattersalls Club Group, said: “It’s outrageous to think that some community clubs are paying more gaming tax than the Star Casino. Clubs give back around $100 million to their local communities every year, while the Casino’s profits are simply distributed among their investors.” Mr Perrottet signed the 20 year deal with The Star’s chief executive Matt Bekier in May 2020 before he resigned at the start of the damning Bell inquiry which found the casino was unfit to hold a casino licence. At the time The Star issued a statement to the Australian Stock Exchange saying the introduction of a flat rate tax, which began this financial year, provided “regulatory certainty”.
The deal wiped out marginal rates of tax for earnings from gambling. Instead it installed a flat rate tax for non-rebate duty for table gaming – money earnt from Australians playing roulette and blackjack – of 17.91 per cent, the same as rival casino Crown.
