Gaming controls take toll on Star

Embattled casino operator Star Entertainment says it is focused on restoring its damaged social licence, with restrictions on the time guests spend at gaming tables and the suspension of gambling incentives such as complimentary drinks.

Star’s first half profit before significant items dropped 43 per cent to $25m as the company was forced to impose a tighter rein on gamblers amid a new regulatory probe into its suitability to hold a casino licence in NSW. Revenue declined 15 per cent to $865.7m.

Statutory profit of $9.1m was a massive recovery from a $1.3bn loss in the previous period but a miss on analyst expectations of about $15.4m.

Star is attempting to win back a social licence damaged by a series of regulatory probes into its suitability to operate in NSW and Queensland. Star shares climbed 8 per cent to 52 cents in morning trade but are still down 60 per cent over the past year.

Star Entertainment chief executive Robbie Cooke said the company’s performance had been impacted by the “necessary implementation of controls” that had resulted in increased guest exclusions and compulsory breaks for gamblers.

Casinos can exclude guests that they believe are gambling excessively or spending beyond their financial means. Mr Cooke said Star also had reduced incentives for guests in its premium areas, specifically the supply of free drinks in private gaming rooms.

“There was an impact for most of the period from certain operating restrictions impacting our customer experience, principally the cessation of complimentary drinks in our private gaming rooms,” said Mr Cooke. “This has reduced the performance of tables and gaming in those facilities.”

Revenue from gaming tables had slipped 20.9 per cent during the first half, while takings from electronic gaming machines fell 15.9 per cent.

Revenue at The Star Sydney dropped 17 per cent, while its Gold Coast property faced a 14 per cent fall and The Treasury Casino in Brisbane suffered a 10 per cent decline.