But VIPs won too much for gains to matter
It’s been a fairly quick recovery for Aussie casino operator Crown Resorts, which has welcomed back many of the VIP customers who defected following a 2016 scandal that sent 16 Crown employees to jail.
According to Inside Asian Gaming, Crown’s financial results for the six months to December 31 revealed a 15.9 percent increase in VIP turnover Australia-wide to AU$22.6 billion (US$17.5 billion) year-on-year, with flagship Crown Melbourne’s numbers up 37.5 percent to AU$19.5 billion.
VIP turnover plummeted 48.9 percent for the 12 months to June 30, 2017 to AU$33.3 billion. At that time, still smarting from the arrests of marketing staff in China, Crown stated it was “stepping back from an aggressive position in the VIP market.”
The employees were caught up in an October 2016 sting and charged with promoting gambling on the mainland, in express violation of the law. Among those arrested was Crown Resorts head of international VIP operations, Jason O’Connor, who was detained for 10 months before being released last August.
Chairman John Alexander said the return of big-spending VIPs “was a pleasing outcome, particularly at Crown Melbourne given the difficult trading conditions in the prior comparable period.”
But it wasn’t all good news. Crown’s half-year profits slumped despite robust high-roller play. According to CalvinAyre.com, the VIP win at Crown Melbourne was 1.21 percent, down 0.69 points from the prior year, offsetting the upswing. At Crown Perth, VIP turnover dropped 41 percent to just AU$3.2 billion while VIP win grew 0.33 points to 1.91 percent.
“Crown just couldn’t win,” the website declared.
