NSW to Introduce New Taxes on Its Casino Industry

By John Isaac,
Editor at online-gambling.com

John Isaac Editor at online-gambling.com

John Isaac is an editor with many years of experience in the gambling industry. He writes expert articles on card games like blackjack and poker. In addition, he is also well aware of the US gambling laws and the Indian and Dutch gambling markets. You can rely on verified information and insightful details.

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Last updated: January 7, 2023

The NSW (New South Wales) government intends to collect more money from casinos to compensate for those areas affected strongly by a series of unfortunate circumstances. Casino operators could be forced into paying higher taxes starting this year (2023) because of this, and it is not a coincidence that the NSW government has targeted the gaming industry.

New South Wales is home to casinos that are owned by Crown Resorts and Star Entertainment. In 2022, Star Entertainment was struck with the largest fine ever imposed on a NSW casino. Crown Resorts has also been under investigation for money laundering and breach of state laws.

According to The Sydney Morning Herald, the two operators will now have to pay even more, along with some other smaller outfits. Their casino poker machines may be taxed as high as 60.67% starting next July.

Casinos in NSW May Face Tax Levy of 60.67% on Their Gaming Machines

The New South Wales government is looking for a minimum of US$243.58 million (AUD364 million). They’ve promised to provide relief to areas affected by COVID-19, floods, and wildfires. To raise this amount, the NSW is taking into consideration a proposal that would see it get the money from casinos. All casinos in the state could be subject to a tax on gaming machines of 60.67%. Up until now, casino gaming machines are taxed lower than what bars and hotels pay for their machines.

After emergency spending caused NSW’s economy to contract, the government has also come under fire for its gaming tax structure. The government has been blasted numerous times by ClubsNSW for taxing the gaming machines of casinos at lower rates while its members are taxed at much higher rates.

The proposed increase in tax also comes in response to the recent news that Star evaded taxes by as much as US$6 million (AUD9 million). The investigation into the operator’s regulatory violation revealed that the operator let some local gamblers qualify as international gamblers, paying less tax.

Star had a contract that would have saved it US669.2 million (AUD1 billion) in taxes over a 21-year period. That agreement was nullified by its willingness to breach state law. New South Wales will also pick up US$66.92 million (AUD100 million) from Crown. This figure is what analysts provide for Crown Sydney, its most recent property in the state.

Although the resort was opened at the end of 2020, its casino just opened this past June. That’s the result of the investigation by the NSW, leading to the company’s gaming license being temporarily suspended by the state.

Fight Continues Regarding Cashless Gaming

After money laundering and access to gaming floors by international criminal organizations, cashless gaming is one of the most contentious issues in Australia’s casino industry. If it were possible for the government to do so, it would immediately force all gaming to go cashless. However, ClubsNSW is making it difficult.

Government officials believe that cashless gaming is the way forward amid reports of gambling addiction and widespread money laundering. But the move has been opposed by ClubsNSW and other parties.

They have thus far had sufficient success to stop the changes. But with Australia’s gaming industry having ongoing issues and the necessity for stricter controls, it is only a matter of time before cashless gaming becomes the new norm.