In recent years, Crown Resorts and The Star have faced numerous challenges in the casino industry. Crown, now owned by Blackstone, has struggled to find a market and has had to make significant staff cuts. The Star has faced a second inquiry that may deem it unsuitable for a casino license, leading to a decline in market capitalization. Both casinos are facing increased regulations that require more administrative burden and are struggling to compete with pubs and clubs that operate a majority of poker machines in the state.
The challenges facing both Crown and The Star raise questions about their ability to turn a profit in the current regulatory environment. Both casinos are required to adopt cashless play for their poker machines and adhere to strict customer welfare and identification measures. The global VIP market that casinos relied on has disappeared due to the pandemic and government crackdowns. This leaves them relying on domestic whales, which may not be as profitable as the VIP market.
Despite these challenges, some experts believe that the casinos will eventually return to profitability. Blackstone, the owner of Crown, has a track record of making profitable investments in the casino industry. Casinos have historically found ways to work around regulations and safeguard measures, leading to increased profitability. However, there are calls for a more universal application of regulations to ensure a level playing field across the industry.
Industry observers believe that if casinos are mandated to adopt cashless play, this should also apply to pubs and clubs that operate a large number of poker machines. The regulatory landscape is evolving, and casinos are adapting to new measures that prioritize transparency and compliance. While the future profitability of both Crown and The Star remains uncertain, there is optimism that they will find a way to navigate the challenges and thrive in the changing casino environment.
As the casino industry grapples with increased regulations and scrutiny, the future for Crown Resorts and The Star remains uncertain. Both casinos are facing financial challenges and regulatory hurdles that may impact their profitability. However, there is hope that they will find a way to overcome these obstacles and return to profitability in the evolving casino landscape. Time will tell whether they can adapt to the changing environment and emerge stronger in the long run.
