Star Entertainment Group CEO and Managing Director Steve McCann told investors Tuesday that he is confident the company would quickly become profitable again if the same safer gambling initiatives imposed on its NSW and Queensland casinos were also rolled out across the states’ pubs and clubs.
His comments, put forward during Star’s 1H25 earnings call, come after the company reported an AU$302 million (US$192 million) loss which it says was largely attributable to the recent rollout of mandatory carded play, time limits and enhanced customer due diligence processes.
In particular, McCann noted that significant declines in Star’s gaming revenues were due to a loss of market share rather than any broader industry headwinds, with both NSW and Queensland having reported record gaming machine revenues in 2024. Data from Liquor & Gaming NSW shows that pubs and clubs generated a new high of AU$8.64 billion (US$5.50 billion) in gaming machine revenue last year, while in Queensland they generated a record AU$3.53 billion (US$2.25 billion).
“In relation to the level playing field, we do believe there is strong appetite among regulators and state governments to achieve a safer gambling environment across the board,” said McCann.
“It’s very clear that customers that are no longer gaming at The Star are continuing to game elsewhere. Total revenue across NSW and QLD in gaming machines has actually increased in recent years – it’s the market share of The Star has that has materially declined – so if we were to regain a material portion of that market share we would be able to restore our revenue to profitable levels relatively quickly.”
McCann added that it was up to Star to show the government and regulators that its safer gambling initiatives are effective “in a way that clearly demonstrates others can do it as well.
“As we work with them to achieve that, we believe that there will be a level playing field that emerges,” he explained. “It’s likely to take a few years to achieve but we believe there is a strong appetite to do it. It’s very hard to put a date on it but clearly we’re doing our best to move as quickly as we can to achieve that.”
Star is, meanwhile, working on a range of initiatives aimed at improving customer management and interaction.
“One of the things that we have experienced has been a very poor customer experience as we’ve implemented the rollout of carded play, cash limits, time limits and also our enhanced customer due diligence processes,” McCann said.
“People have been impacted by the suddenness of the communications occurring, by the way that their play has had to change, and it’s fair to say that Star’s existing financial position has also added to an environment which is less attractive for our customers than it should be, so we are working hard on reestablishing those relationships and reactivating some customers who are not coming to the Star anymore because they don’t like that combination of impacts which they don’t experience at the pubs and clubs.”
Star is also exploring options around its non-gaming offerings, including leasing out some food and beverage tenancies in an effort to generate more revenue and broaden the general offering. According to McCann, the goal is to increase footfall and improve the overall environment within its Sydney and Gold Coast properties.
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