Australian casino giant, the Star Entertainment Group Ltd, has said that the US-China trade war has taken a toll on the number of Asian high-rollers visiting the gambling venues and therefore has contributed significantly to the declining revenues.
The company has expressed concerns over the ensuing trade war and has indicated long-term impacts.
In an interview with Reuters, Star CEO Matt Bekier said: “The very large VIPs continue to travel, but they don’t take as many risks as they have in the past.”
“The potential trade wars have just created a level of uncertainty, and they’re not as aggressive in their outlook as they might have been in the past,” he added.
The company has said that it expects a pre-tax profit of A$550 million to A$560 million ($382.4 million to $389.4 million) for the year to June-end, down from A$568 million for the year ended June 30, 2018.
The company did not give a full-year profit forecast at its half-yearly earnings announcement in February, but analysts had expected the company to report a pre-tax profit of about A$602 million, according to the average estimate of 12 analysts polled by Reuters.
Earlier, analysts had predicted that the revenues may recover in financial year 2020. Australian casinos have been posting steep decline in gambling revenues from VIP high-rollers. Also, the number of Asian gamblers visiting Australian casinos has taken a hit.