Australia’s Star Entertainment has said that they would cut around 400 jobs. The gambling operator had earlier announced that VIP spending at their gambling establishments is at an all-time low, including the flagship Sydney casino.
The Star Entertainment Group has also confirmed that as per the estimates from analysts and industry experts, the VIP spending across its casinos would further fall by 31 percent in the coming six months impacting the profits. The gambling operator is expecting an $18 million decline in earnings for the next six months.
The group blames the US-China trade war for declining VIP spending as Asian high rollers footfall in Australian Casinos has declined significantly in the past year.
In a recent interview, 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.”
Though analysts had predicted that the situation might get better in 2020, it doesn’t seem to have changed for the better.
The revenues from VIP rollers shrunk last year for the top Australian casinos. Crown Australia had posted earlier this year that their VIP revenues have shrunk 12.2 percent to $19.9 billion and has significantly impacted their overall profits for the year ending December 2018.
The Star Casinos fared the worse as it’s revenues from high-rollers declined 33 percent to $20.7 billion in the second half of the financial year ending December 2018.