Star Entertainment shares fall as it halts electronic gaming

The news: The Star Entertainment Group shares fell after it indefinitely suspended all electronic gaming machines and electronic table games in its three properties due to unspecified system performance issues.

The numbers: Star shares fell 2.55% by 11:30am AEST to a $0.50 share price. Over the last 12 months its shares have plunged 48.78%.

The context: Star identified performance issues in electronic gaming machines across its three casinos in Brisbane, Gold Coast, and Sydney following a system upgrade intended to improve the company’s transition to cashless gaming.

All affected gaming machines were switched off at 10:00pm AEST on 13 July, with Star collaborating with its external provider Konami to find a solution. Star stated the decision to halt electronic gaming due to system performance issues was in line with regulatory requirements and safe gambling procedure.

The Star shares have wavered throughout the year as it reported declining earnings as a result of a shrinking premium gaming market in the face of cost of living pressures.

It has also been in the midst of its second NSW inquiry into the casino’s suitability led by Adam Bell along with a string of executive departures. Bell’s final report is due 31 July.