Australia’s Star Entertainment Group has warned that the future earnings capacity of The Star Sydney could be seriously harmed should the NSW state government proceed with plans to substantially increase casino duty rates starting in FY24.

In an earnings and outlook update filed with the Australian Securities Exchange on Monday, Star explained that it anticipates a non-cash impairment charge in relation to its NSW business in the range of AU$400 million to AU$1.6 billion (US$277 million to US$1.12 billion), with the high end of this range based on full implementation of the proposed NSW casino duty rate. The low end of the range assumes no change in the NSW casino duty rate, it added.

“The Star and the NSW Government are in discussions on the implementation of the proposed changes to NSW casino duty rates,” Star said.