China’s squelching of overseas VIP casino play is being felt in Australia
China’s squelching of some VIP play at overseas casino operations is being felt in Australia where Sydney’s Star Entertainment Group Ltd. reported a downturn in its international high-rollers business following the detention in China of employees at rival Crown Resorts Ltd.
The company said in a statement Thursday that turnover from international VIP clients slumped 27 percent in November and December. Star, which operates Sydney’s only licensed casino, said the October detentions on the mainland have created “uncertainty” and “caution” and it’s looking to Southeast Asia to generate more high-roller income to reduce it’s reliance on China.
Star’s earnings from the VIP business were also affected by sales and marketing costs tied to efforts to develop players from other regions, it said Thursday.
Bloomberg reports that 80 percent of Star’s VIP business comes from Hong Kong, Macau and mainland China and that the company wants to be a lot more cautious about which high-rolling clients Star picks.