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.