Casinos hit as Australia gets tough on addiction, crime links

New cashless gambling measure with daily card limit will take major toll, warn analysts

- jonathan Pearlman

SYDNEY Once among Australia's most profitable entities, the country's casinos have been laid low by government crackdowns on money laundering and problem gambling that have hit their bottom lines badly.

The main operators, Star Entertainment and Crown Resorts, which once enjoyed a steady stream of seemingly unstoppable cash flows, now face an uncertain future after the government's actions stripped away key sources of their profits.

Star Entertainment, which is the largest listed casino operator and has venues in Sydney, the Gold Coast and Brisbane, is struggling to avoid collapse.

On Sept 26, it revealed that it had recorded a A$1.7 billion (S$1.51 billion) loss in the year to June 30. On Oct 4, the company's shares dropped to 26 Australian cents, from a high of A$5.43 in February 2018.

Crown Resorts, which operates casinos in Melbourne and Perth, also faces a bleak future.

The flow of high rollers - mainly from China has fallen ever since it took a decision in late 2020 to end dealings with junket operators amid revelations about links between these operators and crime syndicates.

Subsequent government inquiries unearthed the company's ties to junket operators with clear criminal links and a failure to combat money laundering, sparking a storm of criticism.