Australia’s top casino company Star Entertainment’s revenues from overseas VIP visitors have slipped considerably. According to the latest reports, the casino group’s earnings from VIP visitors have slipped by over 35 percent in a year.
On Friday, the Star Entertainment posted that because of decreased revenue from VIP high-rollers its normalized net profit after tax is down by 8.4 percent to $224 million. The company owns and operates casinos in Sydney, Brisbane, and the Gold Coast.
The prolonged US-China trade war and the slowdown in the Chinese economy have been attributed to the decline in the VIP footfall. Most of the VIP high-rollers visiting Star’s casinos in Australia are visitors from mainland China.
Also, the ongoing investigations of the Crown resort’s involvement with Chinese Mafias and also fast track Visa approval for its overseas customers have been taking a toll on the number of visitors from the region.
Last week, the New South Wales (NSW) Independent Liquor & Gaming Authority has confirmed that it would be investigating Melco’s purchase of Crown’s stakes. This is apart from the allegations of fast track Visa approvals for high-rollers.
Crown Resorts has categorically denied the allegations and said they would be cooperating with the authorities.
Commenting on the declining revenues, Star Entertainment’s Chief executive Matt Bekier said: “The group remains focused on executing our long-standing strategy of investing to drive visitation and earnings to our network of properties in sought-after destinations.”