Arrests of Employees by Chinese Officials Still Hurting Crown Resorts
(Australia Associated Press) - Casinos operator The Star Entertainment Group says its international high-roller business continues to be affected by the detention of employees of rival Crown Resorts in China last year.
International VIP Rebate business volumes in the second half of the current financial year have been impacted by the detention of 15 Crown Resorts employees in October, The Star said in a presentation to the Macquarie Securities Australia Conference on Wednesday.
The Crown Resorts employees were detained amid a crackdown on gambling marketing and outflows of money from the mainland.
The arrests triggered caution in the VIP gambling market in China, hurting the flow of rich high-rollers to casinos in Australia.
The Star has previously said turnover in its International VIP Rebate business was down 27 per cent in November and December, compared to the previous corresponding period.
The Star Entertainment Group operates The Star casinos in Sydney and on the Gold Coast, and Brisbane's Treasury casino.
It is also building a new $2 billion integrated resort at Queen's Wharf in Brisbane.
The Star said domestic revenue has continued to grow in the second half of the financial year, despite softer market and macro-economic conditions.
Gross revenue in the period from January to April 30, excluding the international high-roller business, was up 4.1 per cent from the prior corresponding period.
Shares in The Star Entertainment Group dropped 11 cents, or two per cent, to $5.44.
