Star’s share price has fallen by close to 40 per cent over the past year, following an investigation by this masthead which uncovered extensive money laundering and poor governance later confirmed by Adam Bell in a state inquiry.
The NSW Independent Casino Commission (NICC) determined on Friday that the embattled casino group should pay its $100 million penalty following the findings in three instalments; $30 million by March 31st, $30 million by June 30th and the final $40 million by December 29th.
The Star will also pay the costs incurred by former state regulator the Independent Liquor and Gaming Authority (ILGA) in connection with the Bell review – totalling $7 million – by the end of next month.
The group is also bracing for fines totalling hundreds of millions of dollars after the financial watchdog AUSTRAC launched civil penalty proceedings against the casino operator earlier this month, over alleged systemic non-compliance with Australia’s anti-money laundering and counter-terrorism financing laws.
The government has committed to further consultation with The Star and Crown over the implementation of the intended duty rate changes and said any existing agreements between the casinos and the government will not be changed.
The Star Entertainment CEO Robbie Cooke at the Darling Hotel.Credit:Louie Douvis
The Star’s chief executive Robbie Cooke criticised the increased tax proposal on Monday, arguing the group “wasn’t sure” how the state government had modelled its financials, “nor the basis for suggesting The Star does not pay its fair share of taxes” in a release to the ASX.
Crown Sydney has pre-existing tax guarantees with the NSW government of at least $1 billion over the first 15 years of operation. The group does not operate electronic gaming machines or pokies at Barangaroo.
The Star signed a sweetheart deal with Premier Dominic Perrottet when he was treasurer in 2020 which would have saved the casino more than $1 billion on its previous marginal tax rate agreement if it were not torn up following the group’s failure to stem money laundering and other criminal activity in the state.
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