The Opening of James Packer’s new casino in Sydney can tip the scales in the battle with rival The Star to lure cashed up Asian Visitors is emerging as the next big question for the gaming industry in 2019.
The Australian Casino Sector faced a turbulent 2018, with concerns about a pull back in consumer spending, China’s softening economic growth and the volatility of high roller revenue contributing to steep share price plunges, shedding billion of dollars in Value.
Star Entertainment Group’s price lost about 20% in the same period, falling from $5.16 to $4.07, while Sky City, the country’s third biggest operator, suffered a 15% drop.
“Barangaroo is becoming a large part of the conversation as analysts are now starting to consider how to factor it into their numbers and its impact on both Sydney and Star in 2019”, said Donald Carducci, a gaming analyst with JP Morgan.
“The General market consensus is that Crown will put approximately 125 VIP Gaming tables in its Barangaroo casino. If Each Table can generate $2 million, the casino could generate an uplift of $250M, EBITDA a year” Mr Carducci said.
Another important for investors now will be whether VIP revenues at Crown Melbourne will diminished one sydney becomes a two casino set.