Late last month Crown Resorts announced that VIP revenues at its Australian resorts dropped a full 46 percent between July and October 20 due to declining international tourism. High rollers on junkets from mainland China account for much of the operator’s VIP sales.
Reuters news agency cited slowing growth in the world’s second-largest economy due to the ongoing trade war with the U.S. as a reason Chinese high-rollers are staying closer to home. That’s had a negative impact on both Crown and its domestic rival, Star Entertainment.
Despite that decline, revenues from mass gaming rose 2 percent during the period and Crown shares climbed as much as 1 percent.
The company recently found itself back in the headlines for reportedly whisking Chinese into the country on private jets without benefit of customs. “Let me be clear—Crown does not tolerate any illegal activity by its employees or its patrons,” Executive Chairman John Alexander said in a statement.
“The Victorian and New South Wales regulators have taken a decision to examine issues raised in recent media reports and, out of respect for those inquiries, I won’t, and can’t, go into any detail,” Alexander added.
ABC News reports that Alexander blames activists with an “anti-Crown agenda” for exposing scandals about money laundering. At the company’s annual general meeting in Melbourne, he said, “There have been a number of sensationalist and unproven claims made, with many focused on allegations from over five years ago.
“Crown has no interest in being used by those who seek to do the wrong thing … I do acknowledge that these sensationalist allegations have raised some concerns amongst our stakeholders. I can personally assure you we are taking these matters seriously.”
The latest uproar turns up the heat for Crown, which in 2016 saw 18 employees jailed in China for promoting gambling in breach of Chinese law. Three Australians spent almost a year in jail before being deported. In 2017, Crown bowed out of plans to develop a Macau casino and also exited the U.S. market. It has faced allegations of poker machine tampering and drug use at the company’s flagship Melbourne casino. In 2018, controlling shareholder and Crown boss James Packer resigned from the board, citing mental health issues and this year, sold his controlling stake to Lawrence Ho for $1.8 billion.
Tasmanian MP Andrew Wilkie, who called for a royal commission inquiry into Crown Resorts, said the pressure to bring a full investigation “is just going to keep building.”
