Star Casino reopens in Sydney, SGR shares trade higher
Star Entertainment Group (SGR) +3.05%: traded higher ahead of the market today as the company announced its Sydney casino would re-open to patrons today on a restricted basis. The casino will be allowed to host 500 punters on an invitation only basis from today, while customers can return to the retailers and winers and diners can eat at the restaurants.
The Sydney site also signed on with the NSW Government for a 20-year long tax agreement on its gaming revenues through to 2041. While rebate gaming will be taxed at the same 10% level, non-rebate table games will be taxed at 29%, in line with the deal Crown signed for their site in development. The non-rebate EGM tax rate will slowly increase over the next few years but top out at34% for FY28 through to the end of the period. In signing this, Star ensured that they would be the only casino with electronic gaming in Sydney for the next 20 years while also opening up compensation if NSW look to change many of the regulations in place for the casino. Regulatory certainty goes a long way for such a controversial business. We prefer Crown (CWN).
Star Entertainment Group (SGR) Chart
