Star Entertainment Group, one of the biggest casino operators in Australia, has announced that it will have to cut 500 full-time jobs and also freeze salaries due to difficulties in operating its Sydney and Gold Coast casinos.
The company also announced that executive bonuses will be canceled for the foreseeable future. Star Entertainment will also undergo a strategic review which will determine possible alternatives that would eventually increase value for its shareholders.
The company’s intentions were revealed in a filing submitted to the Australian Securities Exchange. The proposed measures are expected to save around 100 million Australian dollars in annual operational expenditure for Star Entertainment.
The Australian company’s announcement comes after the New South Wales state government proposed a major tax hike on gaming revenues, which could raise the current 32 percent tax to more than 60 percent.
The company filing cites a “significant and rapid deterioration in operating conditions” at The Star Sydney and The Star Gold Coast as the motivation behind the cuts. In fact, both casinos were hit with operating restrictions following the inquiries into the company’s operations.