Following the Queenland government’s announcement that there will be a tax increase on electronic gaming machines, or EGMs, in all area casinos in July 2009, Tabcorp Holdings released a statement that said the gaming company was “disappointed” with the decision.
“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,” said Walter Bugno, Tabcorp’s chief executive of its casinos division, in a prepared statement.
The company estimated that if the tax increase took place in 2008, it would have cut 20 million Australian dollars out its net profit. Tabcorp said its casinos at Conrad Treasury in Brisbane and Conrad Jupiters will experience a tax increase of 10 percent, from 20 to 30 percent. Additionally, at Jupiters Townsville will experience a 10 percent increase, taking it from 10 to 20 percent.
“This increase only applies to casinos,” Mr. Bugno added. “However, casinos account for less than eight percent of all EGMs across the state.”