Crown Casino troubles continue
Rumours have been rising that James Packer’s Crown Casino in Melbourne is in trouble. The Crown Casino troubles follow the arrest of fourteen Chinese workers during 2014. Many Chinese high rolling gamblers have since avoided the casino.
Last week there were reports of a large scale lay-off of staff. Today, shares have been crashing as a possible cash flow crisis looms at the casino.
There also reports that James Packer’s Crown Casino will have to offload hundreds of millions of dollars worth of assets. Those assets include three luxury jets, luxury yachts, a golf club and the Packers classy Hunter Valley property. Waning interest from Chinese high rollers continues to been blamed.
Reportedly the three private jets were worth $100 in 2014. They were used to for the travel of Chinese high rollers. A $50 million dollar yacht known as “Infinity” might also be sold.
Apparently, Packers Hunter Valley property was sold to the casino last year to entertain high rolling gamblers.
There have also been reports that Crown Resorts also plans to stop sponsoring Melbourne Storm and South Sydney rugby teams. A handful of other sports sponsorship deals have also been downgraded or cancelled.
Stocks in Crown Casino fell by 10% today as these announcements were made. This only adds to the problem.
The one question to be asked is if the Chinese high rollers are coming back soon. I think the answer is probably be no because otherwise why would these toys be getting sold. Crown Casino troubles could well be ongoing.
It does seem that a brush with the Chinese can be costly in business terms. Two years is a long time to be out in the cold, apparently with very little prospect of return. It is a lesson that the Chinese can deliver such a powerful blow, also that people can be so exposed. No doubt investigations in China will be ongoing….
Read more about the Crown Casino in Melbourne.