The controversial Australian casino giant, Crown Resorts has added 70 permanent employees into its accountability teams that check financial crimes and deficiencies after the testimony in the Victorian Royal Commission that proved AU$240 million and AU$250 million was evaded in taxes.
The company is expected to see a loss at the end of the fiscal year on 30th June 2021, the company aims to add 70 employees to reform the company to avoid such accidents again. The main target is to train them according to the healthy rules and regulations of gambling that will stop them from entering hot waters again. The 70 staff members who were removed were involved in malpractice and it was one of the most foremost reasons that the crown casinos saw such a trail where they lost their repute. The Victorian Royal Commission received evidence of a female doctor with gambling issues to be taken advantage of by the staff at Crown’s and is deemed as the part of the culture, which now is seen as a danger and steps are being taken to safeguard the casinos.
The ongoing investigation from the last year by the New South Wales Crown resorts made them unfit to hold a state casino license. The main reason was the inability of the crown to provide a clean financial background amidst the irregularities in the casinos.
The company expects the closure costs of AU$240 and AU$250 million because of the tax evasion and an overall negative balance at the end of the year. Keeping in mind the loss is calculated. before interest, taxes, depreciation, and amortization. This means that their profits for this year will be very low and there is a risk of incurring debt but there was one welcoming thing for the group as the AU$400 million loans they took to finance the project has been repaid and the debt is now decreased by a significant amount and their total debt is only AU$900 million now. Their credit rating has been on the verge of decline for a long time now and even in January, they were forced to give $AU175 million to the creditors to maintain their credit score.
The COVID issue is prevalent according to the crown and in the next fiscal year, it will result in more losses as well as the man properties that closed because of the verdicts against them. An alternative strategy can save them and a risky venture to the online gambling world is seen as an option in the company.