SYDNEY, Oct 28 (Reuters) - Australia's No. 2 casino company Star Entertainment Group Ltd SGR.AX on Friday warned of uncertainty around future revenue from China, after 18 staff at rival Crown Resorts Ltd CWN.AX were arrested for suspected "gambling crimes" there.
"Potential impact on revenue is not clear at this point given the limited information available," Star Chief Executive Officer Matt Bekier told the company's annual general meeting, according to speech notes filed with the Australian Securities Exchange.
The detention this month of 18 Crown staff, three of whom are Australian nationals including its head of international VIP gambling, has sparked concern about the impact on Australian casinos which rely on wealthy Chinese gamblers.
Star's Sydney-listed shares fell 2.5 percent in early trading on Friday, while the broader market rose 0.3 percent. Crown shares were flat.
Bekier cancelled a trip to the Chinese gambling hub of Macau last week, choosing instead to speak to investors in Australia who were concerned about the impact of the China arrests. Chairman John O'Neill told the AGM the company had no offices in mainland China and none of its staff had been detained or questioned by Chinese authorities.
VIP gambling delivered "less than 30 percent" of the company's revenue, with 80 percent of that derived from VIP junkets from Asia, he said in prepared remarks.
"These are early days in terms of the situation in China. We will continue to monitor developments closely, while working with staff and Asian-based external agents to understand the situation more fully as it unfolds," he said.