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While casinos are starting to reopen and adapt to the new changes that are being made. The Star Group is set to reopen on an even brighter note. The casino guru has managed to secure a new tax deal that gives it a monopoly over electronic gaming machines in Sydney.
TSG seems to be on an expanding spree as it recently announced its merger to sportsbook, Flutter entertainment. Meaning, they can now be found in the online sports betting industry as well. Additionally, Flutter is recognised globally, meaning the revenues will be on a spike for TSG this year.
The Star Group Announces its Approval from the State to Reopen
Currently, land casinos are hyped about reopening after what seemed like an endless lockdown. But, because they are non-essentials, they have to make sure that they seek approval first. Hence, they will be reopening on the terms and expectations of the government or regulatory body.
So, the Stars Group has gotten that approval for reopening. However, the terms are that they will have to make sure that they implement the health measures that have been put in place. And, these include the social distancing requirement. Hence, they can only allow 500 people to participate in the gaming process.
Impact of the Lockdown on TSG
Globally, casinos were heavily affected by the closure between February and June. For example, the biggest casino market in the world, Macau, is currently facing a 73.7% decline in revenue this month. And, the numbers have not been going up since.
But, for the Star Group, they had to let go of 90% of its workforces which amounts to 8100 people. This was so they could stay afloat and not scare investors away. And, from the looks of things they managed to achieve that.
TSG Forcing Crown Casinos to Risk of Bankruptcy
Crown Casinos might suffer so many losses as they are now being forced to shut down all forms of electronic gaming for the next 20 years. Unless, of course, they manage to strike a deal with The Star Group.
The charges will be paid off in parts. For the first 3 years, the group will be paying 32 % of taxes. After they will have to pay 33% in taxes. Then, the taxes will be increased to 34% for the remaining 14 years.
Conclusion
Now that casinos are reopening for real money gaming. We will have to see whether or not TSG can afford to stick to this deal for the next 20 years. But, if they manage to pull through, then this is about to be the most lucrative deal that the company has ever made.