Your Daily Asia Gaming eBrief: The Star expecting further penalties/competition

Wednesday 23rd of November 2022

Good morning. Star Entertainment is calculating further woes from the investigations into its suitability to retain its casino licenses, with $29.9 million earmarked for 2023 mitigation and uncertainty if it can keep its Queensland licenses, even as Crown Sydney competes for its NSW revenue. In Macau, government gaming tax on GGR came in below half of the expectations for Jan-Oct, but further headwinds are blowing, with more mainland China and local cases driving uncertainty.

What you need to know

Star Entertainment facing $29.9mln remediation costs in 2023, new competition from Crown Sydney. Group canceling all junkets, closing int'l offices/bank accounts.
Macau's 4Q22 looks bleak, as Jan-Oct government tax revenue came in at half of the expected, with further hindrances from mainland China outbreaks.

On the radar

Tabcorp takes Entain to court for new advert deal with NSW hotels.
India ministers seek 10% increase on online gaming tax, to 28%.
DraftKings reimbursing $300k in customer funds after 3rd-party hack.

AGB Intelligence

AUSTRALIA

The Star facing expecting further fines, increased competition

Ongoing investigations and remediation efforts are costing Australia's The Star Entertainment Group, with at least $29.9 million in resulting costs expected for the group in 2023 and more ongoing into 2024, despite continuing efforts to reshape itself. The group is pledging to cut all ties with junkets and close international offices and bank accounts, even as it faces increased competition from Crown Sydney.