Crown Resorts high roller gambling slumps by 26pcBusiness | 21 Aug 2019 3:27 pm
Australia's Crown Resorts' high-roller gambling business continued to shrink, cementing the company’s woes amid allegations that criminal gangs laundered money at its casinos.
Turnover from the VIP program tumbled by 26 percent to A$38 billion (US$26 billion) in the year ended June, Melbourne-based Crown said today.
Weakness in Crown’s VIP business was enough to drag down total group revenue, indicating the company’s reliance on big-gambling overseas visitors in a sluggish Australian market.
The regulatory investigations into the media reports -- that Crown used junket operators linked to drug traffickers to attract wealthy Chinese gamblers -- risk compounding the current weakness in Crown’s VIP business.
That also bodes badly for Crown’s planned luxury casino in Sydney, which is due to be completed in 2021 and will rely in large part on VIP gamblers.
Crown reiterated that media reports “unfairly sought to tarnish Crown’s reputation.
Crown Resorts reported full-year profit of A$368.6 million, down by 4.7 percent.
Crown has declared a final dividend on ordinary shares of 30 cents per share (total full year dividend of 60 cents per share).-Bloomberg/The Standard