Shares in casino giant The Star Entertainment Group plunged to a 12-month low after the delivered a profit warnings and promised to cut as much as $50 million from its cost base after being hit by softer economic conditions.

The Star said on Tuesday it expects normalised earnings before interest tax, depreciation and amortisation (which adjusts for lucky streaks for either the house or punters) for the year ending June 30 would be between $550 million - $560 million, below the $568 million posted last year.