The continued erosion of Burswood Ltd’s foreign high-roller business has highlighted how critical it is for the Perth casino operator to win tax concessions from the West Australian Government to remain competitive in a market that the company pioneered in Australia.
The contrast in fortunes between Burswood and Melbourne’s Crown casino Pengeluaran HK has also provided Mr Kerry Packer’s Publishing & Broadcasting Ltd with a persuasive case to put before the WA Government to scrap Burswood’s 10 per cent individual shareholding cap.
In its 2001 results released last week, Burswood revealed a further deterioration in its international commission business revenues, which declined 31 per cent to $54.5 million. Five years ago, that figure was $238 million.
To generate those ICB revenues, Burswood had to pay $38.4 million in junket commissions and rebates.
Its effective tax rate of 16 per cent (including a 1 per cent park board levy) would have cost a further $8.7 million, suggesting meagre overall ICB returns once various other operating expenses were accounted for.
While a similar crimp on ICB earnings forced Sydney’s Star City casino to abandon its pursuit of foreign high-rollers, Burswood’s managing director, Mr John Schaap, reaffirmed last week his commitment to the …Read more →