Star, Crown should have a level playing field
In what could be good news for Crown Resorts and the Star Entertainment Group, the government of New South Wales may do away with a mandatory five-yearly investigation of casino licenses in the state.
According to CalvinAyre.com, the government report says “consideration will be given to the potential abolition of the review provision, an extension of the five-year time frame and other amendments, as appropriate.”
The report continued, “Given the investments made by the operators in their properties, it is not believable that the authority could ever come to the conclusion from a review conducted under Section 31 that it is no longer in the public interest that the casino license should continue in force.”
The government also reportedly received a recommendation that would allow Star to offer credit to international premium players, which will be allowed at Crown Sydney, a $2 billion project that will open in Barangaroo in 2021.
The Asia Gaming Brief reported that government officials supported most of the 194 recommendations made under the “casino modernization review.”
“The recommendations from the review would significantly update NSW’s model of casino regulation,” Gaming Minister Paul Toole told the Daily Telegraph. “The review supports changes to the Casino Control Act of 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.”
Sky News Australia reports that turnover from the Star’s international VIP business dropped 20 percent in the year that ended June 30 affected by a high win rate against high-rollers and continuing fallout from the arrests of 19 Crown staffers in Mainland China last October. Those employees—all of whom have been released, some after 10 months behind bars—were charged with violating China’s strict laws against marketing casino junkets to Mainland residents.
Star CEO Matt Bekier says his company is looking for a broader-based customer pool. “We think that, as we have reflected on our VIP strategy, the real sweet spot for us is the customer that’s diversified, who wants to do more than just gamble, a family who seeks out tourism experiences. Therefore, we are focusing on a customer that probably looks more like a super- high-end tourist customer who enjoys gaming. And that customer comes from across Asia, and in fact across the world.”
Bekier would like to see these customers eventually make up 25 percent of the group’s international VIP business, reported Sky News.
