Star Entertainment punished as NSW tax spooks investors
, 2022-12-20 01:23:35,
Legal and corporate governance expert Helen Bird was also surprised that the NSW government had not consulted casino operators on the proposed changes, but said treasurer Matt Kean was not required to do so.
“I am surprised that it has not been notified because tax amendments work better after consultation, but there is no formal requirement to do so. The popularity stakes definitely favor an anti-casino view of the world at the present time,” Bird said.
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Bird argued that it is clear that the state government believes that casinos can pay more to contribute to a broader social license, while casino operators believe that higher taxes could cripple much of the profits left in the organization, “The truth is likely to be somewhere in between.” she said.
Star’s share price has fallen about 40 percent over the past year, after an investigation carried out by this header which uncovered extensive money laundering and bad governance later confirmed by Adam Bell in a status query. The casino operator posted a loss of $199 million in 2022 and booked a goodwill impairment charge of $162.5 million for its Sydney casino.
Morningstar stock analyst Angus Hewitt cut the fair value estimate for the group by 28 percent to $2.80 due to the likely state tax increase, noting that “details of the tax change are scant… the impact remains highly uncertain.”
Morningstar estimates that about 85 percent of the increase will apply to Star and forecasts a…
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