Star ready for incoming Sydney competitor

Wednesday 25th of October 2017

Star Entertainment Group chairman John O’Neill says his company is in a state of “eternal vigilance” regarding losing its monopoly in the Sydney casino market, local media reports.

However, rather than worrying about the direct competition for the gambling dollar, Mr O’Neil said the main threat will come from its competitor poaching staff rather than poaching high rollers.

"Undoubtedly as Crown moves into the market they will be looking to recruit our relationship managers and the like but I am very comfortable with our management team and the board is eternally vigilant for competition when it arrives," he said, adding that the retention of key personnel is one of Star’s top priorities come 2021.

"We are aware of what Crown will be offering at Barangaroo; we are aware that whilst it is called a VIP-only facility it will only have table games and the minimum bets will be as low as $20 - so its a bit generous to say its VIP-only," Mr O'Neill added, quoted by News.com.au.

The company is also combating this through diversification of its international visitors, which it says will help leverage from a broader base of customers and source markets.

One key development to support this diversification is the new luxury suite hotel being built at the Gold Coast - which is being developed in a joint venture with Chow Tai Fook and Far East Consortium.

Looking at recent earnings, The Star reported a 4 percent rise in total normalized group revenue for the period from July 1 to October 22, 2017, while domestic revenue is up 5.2 percent year-on-year.

Volumes in the International VIP Rebate Business is broadly in-line with the year before, noted the company.

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