The big winner was the gambling outfit Tabcorp, up 6.3% on a broker upgrade, while Iress has gained 6.2% after announcing it would be selling its loss-making superannuation business. The financial sector was in demand, along with academic services and property trusts. Star Entertainment crashed 18 per cent as the casino operator blackcoin.co continued to seek a financial lifeline. Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. Of the ASX 200 companies reporting this morning, investors have been pleased with Ansell (+6.8%) while JB HiFi (-2.5%), and Car Group (-6.2%) have not impressed, both facing tighter margins. The first day of the hearings has heard allegations leadership failed to address money laundering risks and criminal associations at its casinos between 2017 and 2019.
To add further strain to profits, the New South Wales government is considering increasing taxes on gaming revenue. Discussions between Star and the State continue to develop, with the hope that tax increases will not be as damaging as projected by investment analysts. The share price of Star Entertainment has fallen significantly in the past days. The Star Entertainment Group Ltd (SGR), the owner of Star Casino Sydney, Melbourne and Brisbane, has seen its share price take a dive due to the potential increase in NSW state gaming taxes and increased competition from Crown Casino.