Crown Casino Resorts in recent months has seen significant blows to the company on an international level. This has the company to decide to make some drastic changes to their future plans.
The resort was hit by a big scandal in December 2016 when about 18 of its employees in China were arrested for endorsing gambling. In China, the law prohibits the activity of gambling except in the Macau region. There is no clear reason for the detention of the employees, and the resort is also mum about the incident.
Crown Casino Resort’s profits were affected by this event. The most affected division was the high rollers and this was because of the resort’s VIPs are from China. This incident left a bad impression of the Crown Casino Resort on these important clients.
Crown Casino Resorts’ Melco Crown Share Selldown
Crown Casino Resorts had to sell down of some of its shares from the Melco International Development partnership. Melco International is a Hong Kong developer that partnered with Crown Resorts in the hopes to expand its operations internationally. However, because of the falling prices of Crown Resorts sold some of their shares to Melco International. Initially, the resort had a 34.3% stake in the partnership, and now they hold 11.2%.
Due to the recent activities that have affected their operation severely, Crown Resorts may eventually end up selling all their shares. Crown Resorts will likely concentrate fully on the operations that they run in Australia after the sale.
Crown Casino Resorts Future Plans
Crown Resorts Ltd. is one of the largest Australian casino operators. They own two casino resorts, one in Perth and the other at Melbourne. The resort is currently working on its third resort which will be located in Sydney. This venture is scheduled to open in 2020 in the Barangaroo precinct.
The Sydney resort will host VIP clients and services for the Asia-Pacific region. However, since most of the VIP players are from China, the future viability of this project hangs in the balance. With no charges of the employees being held in China at the moment, this is not final.