The NSW government is unlikely to hand Star Entertainment the extra tax relief that the embattled casino operator has sought, complicating the company’s attempts at negotiating with increasingly frustrated lenders for more financial flexibility.

The Australian Financial Review first reported on Monday that Star, which operates casinos in Sydney, Brisbane and the Gold Coast, had sought temporary tax relief from both the NSW and Queensland governments. That was part of a broader plan put together by new chief executive Steve McCann to turn around the company.