CASINO NEWS: GOVT TO EASE CASINO REGULATIONS IN NSW & STAR POSTS SURPRISING PROFIT
Star Casino will be allowed to give credit to high-rollers the same way Crown will be allowed in its new Barangaroo Casino under a draft government response to the government’s “casino modernisation review”.
The Star, like Crown in Melbourne, will be allowed to issue credit to “international premium-players” but not Australian residents, according to the draft response.
The review also recommends taking the power to give smoking exemptions for high-roller rooms off the Health Minister and giving it to the gaming minister in a further bid to level the playing field between Crown and the Star.
The NSW government, in a draft response, supported most of the 194 recommendations made under the “casino modernisation review,” which included the cutting of red-tape for “low-risk administrative matters.”
The government, however, did not agree with the recommendation that casinos should not knowingly let intoxicated persons gamble, as “the current provision [already] provides the necessary protection for patrons”.
The government also said it did not support the recommendation to abolish the licensing of casino employees, and the recommendation for casinos to run their own problem gambling services.
“The recommendations from the review would significantly update NSW’s model of casino regulation,” said Gaming Minister Paul Toole.
“The review supports changes to the Casino Control Act 1992 that reflect a risk-based approach to regulation, which is consistent between venues.
“With Crown Sydney expected to open in 2021, it is essential a modern regulatory regime is applied consistently to both Crown and The Star,” he added.
Sources: agb.com/ daily telegraph
STAR GROUP POSTS SURPRISING PROFT FOR FY17
The Star Entertainment Group posted a $264.4 million net profit for the fiscal year, beating analysts’ forecasts.
The full-year profit of The Star, which rose 36 percent from $194.4 million a year ago, came as a surprise to many analysts especially since the number of high rollers from China has fallen.
In a disclosure to the Australian Stock Exchange, The Star reported that its international VIP gambling dropped 20 per cent in the year to June 30. It reported that its normalised profit was down 11 percent at $214.5 million.
What saved the day for The Star was the higher than normal ‘win rate’ for the casino which resulted in a robust net profit and a 23 percent boost in the dividend for the year. The Star reported that domestic gaming volume bounced back from its first half slump, with revenues growing 6 percent in Sydney and 9.9 percent on the Gold Coast during the second half.
“FY2017 saw further advancement in the Group’s strategy of investing in our core domestic assets and diversifying our international business. The gaming and non-gaming offerings at our Sydney and Gold Coast properties have been improved following the completion of major capital works,” said Star chairman John O’Neil.
The chairman also said there has been “significant progress” to expand and enhance its properties to cater to international visitors – particularly from Asia.
“Together with our Destination Brisbane Consortium (DBC) partners, Chow Tai Fook Enterprises (CTF) and Far East Consortium (FEC), the Group took possession of 13 hectares in the Brisbane CBD in January 2017 to progress development of the Queen’s Wharf Brisbane integrated resort. Demolition works are on schedule, with foundation work to commence in early 2018,” he said.
“At The Star Sydney, the Group, CTF and FEC continue to progress the development application in relation to a proposed approximately $500 million, 400 key tower, to include The Ritz-Carlton Hotel and apartments.”
Sources: agb.com / calvynayre.com
