The Iemma Government has abandoned its plans for a second casino after the threat of a James Packer led gambling consortium spooked Tabcorp into signing a new 12-year deal. The owners of Sydney's Star City casino will pay the NSW government a AUD 100 million upfront fee as part of a deal guaranteeing there will be no new casinos in the state over the next 12 years. NSW Treasurer Michael Costa this afternoon announced the agreement with Tabcorp had now been reached following extensive negotiations.

Shares in Tabcorp rose as much as 2.1 per cent today after it reached a deal with the NSW Government to remain the sole owner and operator of a casino in NSW. The company owns the Star City casino in Darling Harbour, Sydney. “NSW remains a one-casino state,” NSW Premier Morris Iemma told reporters. By mid afternoon, Tabcorp was up 1.3 per cent at USD 15.31 in a broader market down 0.4 per cent.

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.

Investors wiped more than AUD 100 million off the value of major gaming companies Tabcorp Holdings Ltd and Tattersall's Ltd on Monday, after the pair warned earnings could be impacted by a horse racing industry shut down. Smaller rival, online betting firm Centrebet International Ltd also lost value after weekend thoroughbred and harness race meetings were cancelled in a bid to contain an outbreak of highly infectious equine influenza that has rattled the industry.

Skycity Entertainment chief Evan Davies has become the second casino chief executive this year to pay the price for underperformance, after the board announced his immediate departure yesterday. It comes two months after the company revealed a 23 per cent fall in interim profit and as the trans-Tasman operator steers through a major restructure - which is likely to lead to the sale of some of its assets - potentially leaving it a prey for James Packer's Crown Gaming and private equity.

Embattled casino and gaming company Tabcorp has begun talks with the NSW Government over the exclusivity arrangements for its Star City casino licence in Sydney. Acting Tabcorp chief Elmer Funke Kupper is believed to have met with the new NSW Gaming Minister, Graham West, earlier this month. It is understood separate discussions are under way between the department, Tabcorp and Star City management over the exclusivity arrangements.

Gaming and wagering giant Tabcorp Holdings Ltd has sought to hose down speculation it may be a takeover target. The company released a statement to the market on Thursday following media speculation and a rise in its share price on Tuesday. Tabcorp said it "has not been approached or been involved in any discussions concerning a possible takeover of the company."

Gaming giant Tabcorp Holdings Ltd has slammed a Victorian Government decision to lift the annual levy on electronic gaming machines. Tabcorp said the decision would affect profits and was being implemented at a bad time for the industry. The company said today that it was disappointed the government had lifted the levy on each gaming machine to USD 4,333 from USD 3,033.

Sydney (Reuters) - Australian wagering firm Tabcorp Holdings was no longer in talks with Richard Branson's Virgin Group on plans to develop a USD 3 billion (1.5 billion pound) casino in Macau, sources familiar with the situation said Monday. However, Virgin was still talking to other potential partners on plans to build and run a casino and resort development in Macau, a former Portuguese territory in southern China, one source said.