In an effort to continue funding A$17 billion in public works projects, the state of Queensland in Australia will take an additional 10 percent tax from casino slot revenues.

The move will raise the tax rate for Queensland’s four casinos to 20 percent of casino slot revenue for the properties in Cairnes and Townsville and to 30 percent for those in Brisbane and on the Gold Coast.

The increase will take effect July 1, and is expected to add A$36 million to the state treasury this year.

The operator of three of those casinos, Tabcorp, is not at all happy with the decision.

In a statement, Tabcorp’s chief executive for casinos, Walter Bugno, said, “It is disappointing that the Queensland government has chosen to increase taxes on EGMs in the casinos, and even more so that it has been done without any consultation or forewarning.”

Had the increased tax rate been in effect this past year, after-tax profit would have been lowered by A$20 million.

Bugno noted that the rate increase only applies to slot machines in casinos, leaving untouched the overwhelming majority of gaming machines that can be found in non-casino locations throughout Queensland.

Fewer than 8 percent of all slots in Queensland are in casinos. Gaming machines in other licensed premises, such as clubs or hotels, are taxed on their monthly metered win. Rates start at 17.91 percent but can increase to 35.91 percent. In addition, a Health Services tax can take as much as 20 percent more for the state each month.

Ironically, in its effort to save public works jobs, the government might be putting private-sector jobs at risk.

“Tabcorp is a major employer in Queensland, providing jobs for 4,500 people, and contributes some A$100 million in taxes to the state government. Tabcorp should have been consulted on these tax increases before they were announced,” Bugno said.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.