The Star Sydney has resumed the service of alcohol to VIP players, having previously paused the practice in the wake of the Bell Inquiry into its suitability.
The Australian reported Friday that Star has been in talks with the NSW Independent Casino Commission (NICC) in relation to the issue of alcohol service, with Bell’s report – which included a recommendation that Star be found unsuitable of retaining its casino license when published late last year – noting that alcohol had been served to some gamblers as an inducement to keep playing.
However, Star Entertainment Group said in April that the performance of its Sydney and Gold Coast casinos had been subdued due to a “significant and rapid deterioration in operating conditions”, believed to be a reference to the free alcohol issue, among others.
The NICC said in a recent report that, “The Star voluntarily ceased the service of free liquor to patrons following the release of the Bell Report, but following numerous requests from The Star, the NICC has since not objected to the service of free liquor in certain circumstances.”
The NICC reiterated to The Australian this week that it does not object to Star serving alcohol to high-rollers but did not want to see the same practice on the main gaming floor.
“The NICC will monitor this issue closely over the coming months,” it said. “The casino operators have also been reminded of their Responsible Service of Alcohol (RSA) obligations.”
In a recent note, investment bank JP Morgan said the decision by Star to stop serving free alcohol in its VIP rooms while its local competitor Crown Sydney continued to do so had accounted for a 50% decline in gaming revenues in the affected areas. The resumption of such service would therefore help Star claw back some of that lost business.
“A number of factors will impact FY24 performance, most importantly the resumption of free alcohol service in the coming weeks,” analyst Don Carducci wrote last month.
“The most impacted segment is Gold tier/Oasis room whereby removing free service of alcohol had >50% impact on our observations of table occupancy.”
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