The state may get a second casino after Star City was believed to be near a deal giving away its exclusivity rights.
Talks between the state government and Star City’s owner Tabcorp stalled, with the gaming giant granted a second month-long exclusivity extension to continue the talks.
However, it is believed they are close to agreement which would result in a lower gaming tax rate if Star City relinquishes its sole NSW casino operator privilege.
The casino is also believed to have been pressuring the Government over the rise in electronic gaming tables.
Sources close to the deal confirmed a Tabcorp proposal is with the Treasury Department which apparently wants to lift the tax from 24.5 per cent to 30 per cent.
The casino’s 12-year licence which gives Tabcorp rights to operate the state’s only casino was to expire today, but a spokesman for NSW treasurer Michael Costa confirmed a second extension yesterday.