It was anticipated by investors that Crown Casino would fail. The Australian gambling behemoth’s shareholders found out today just how damaging COVID-19 plus other ongoing regulatory difficulties have been.
Crown Casino’s revenue was US$1.13 billion during the fiscal year 2021 (July 1, 2020, to June 30, 2021), a decrease of more than 31% from the previous year. Net loss after operating expenses was $191.22 million.
During the fiscal year, the company’s main property, Crown Casino Melbourne, was closed for 160 days due to COVID-19. During the quarter, revenues fell by 64% to $420.9 million.
Crown Casino Sydney, the group’s $1.6 billion integrated resort that opened in late December, has no casino area because it has been ruled unfit to handle gambling by the New South Wales Independent Liquor and Gaming Authority. Revenue from the Barangaroo complex reached $50.2 million in its first six months.
Among the company’s casinos, Crown Casino Perth was its lone bright spot. After only 27 days of closure, the Western Australian property increased its operating income by 22% to $543.3 million.
In addition to its London boutique casinos, Crown Casino generated earnings from its online social gaming division, Crown Digital.
Crown Chair Jane Halton said:
2021 has been a challenging year for Crown, with intense regulatory scrutiny and unprecedented impacts on business operations from the COVID-19 pandemic.”
Take exit Oaktree for Crown Casino
Casino operations remain prohibited for Crown Resorts in New South Wales. As ongoing Royal Commissions continue their investigations into it, its gaming privileges remain in doubt in Melbourne and Perth.
According to the Sydney assessment, Crown did not do nearly enough to prevent its Australian casinos from being exploited for money laundering by organized criminal networks based in Asia. Despite not being a member of the organization’s board of directors or executive, New South Wales officials claim that struggling billionaire James Packer wields undue power over Crown.
Packer’s share was acquired by Oaktree Capital Management, a US-based private equity company, to assuage the Royal Commissions in Victoria and Western Australia’s concerns. The multinational asset management firm made an offer of around $1.5 billion.
The company stated recently
“Crown is no longer in discussions with Oaktree regarding the Revised Proposal that was previously announced by Crown to the market on June 15, 2021.”