While Crown Resorts has dominated the headlines over the past week after 18 employees were detained by Chinese authorities for allegedly targeting local VIP players, the company’s main Australian rival has managed to stay under the radar.
Star Entertainment Group, which operates Sydney’s The Star as well as properties in Brisbane and the Gold Coast, offered no comment when approached by WGM late last week – opting instead to watch how events unfold from a distance.
But rest assured it will be taking a keen interest. Having long played second fiddle to Crown in the VIP segment, The Star out-performed its Melbourne rival for the first time ever during the first six months of 2016, with VIP revenue of AU$320.5 million to Crown’s AU$312.8 million.
It follows a deliberate ramping up of its VIP offerings, with The Star opening two new designated VIP gaming areas for its international guests over the past 12 months.
By chance, WGM was granted an exclusive behind-the-scenes tour of The Star’s facilities just two weeks ago and was suitably impressed by the quality of its VIP salons. They include a handful of spectacular private rooms on the top floor of its Astral Tower offering sweeping views over Sydney Harbour and the nearby CBD, while the second area is designed in the style of Macau’s best VIP Clubs in an effort to provide some familiar surrounds.
Last week, Fitch Ratings said the recent Crown arrests presented greater concern for casino operators outside of Macau than those within.
“Fitch believes the risks related to the more recent detainment (namely reduced VIP volume) to be more applicable to APAC casino operators outside of Macau,” it said.
“The detainment is a sign to Fitch that high roller gambling by the Chinese nationals outside of China remains top of mind for Chinese authorities.”
