Tax rates for the Sydney Crown and The Star casinos will increase, backdated to 1 July, after an agreement was signed on Monday night.
Having been given a reprieve on a planned poker machine tax increase until 2030, The Star has also agreed to pay a transitional levy until the new duty regime kicks in.
Both businesses have taken major hits to their profit margins in recent years, raising fears of mass job losses.
The government will introduce legislation aimed at protecting more than 3000 jobs at The Star over the next six years.
Treasurer Daniel Mookhey said the negotiations were one of the most difficult challenges he had inherited from the previous government.
"The previous government had bungled their casinos policy," he said on Tuesday.
"These arrangements will see both casinos pay higher taxes."
Planned tax increases for Sydney's two casinos were announced by the Dominic Perrottet-led former coalition government in December 2022.
Those changes were intended to raise $350 million over three years.
Mr Mookhey previously said plans to increase the poker machine tax on The Star could have shuttered the business.
"You can't collect tax from a dead business," he said in August.
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