CROWN CASINO FACES A $261M LOSS DUE TO PANDEMIC
CROWN CASINO RESORTS PLUMMETS to a $261.6 million net loss after this COVID – 19 pandemics that happened worldwide. This also led to the closure of the gaming giant and its casinos which restricted operations in Melbourne and Perth over past years. As a result, crowns revenue fell to 31.3 percent at $1.53 billion. Crown Resorts is one of Australia’s largest entertainment groups. It owns and operates two of Australia’s leading gambling and entertainment complexes, Crown Melbourne and Crown Perth. This pandemic made a huge loss on both of the resorts which crown owns.
Jane Halton Crown’s interim chair, appointed to replace Mr. Xavier Walsh, said that “this COVID – 19 restrictions and regulatory scrutiny amid royal commissions into its casino licenses had affected the business.” She also said that 2021 had been a challenging year for the crown, and there were unprecedented impacts on the business operations from the COVID – 19 pandemics.
Crowns management made a statement saying that crown is supportive of the measures taken by the state and the federal governments in response to COVID – 19 situations, as their priority is to focus on the health and safety of the guests, the employees, and the community. They also made a statement saying that they will not pay a dividend to the government.
Crown is now waiting for Victoria’s royal commission into its Melbourne casino license and another royal commission into the Perth casinos license. Crowns gaming giant panned to open the new Sydney casino in late December last year, but their license got suspended after the inquiry where they said the crown was unfit to operate a casino there.
The interim chair, Ms. Halton, said that COVID – 19 pandemic “created an uncertainty due to varying restrictions remaining a feature of day to day life”. Crown in Melbourne had to stand down most of the staff due to the pandemic in June 2021.
Ms. Halton also said, “Notwithstanding the current challenges we are facing in the business, we remain optimistic and believe that crown has a truly special portfolio of assets.”
On 30th August, crown resort falls into another loss as they have lost the deal with Oaktree Capital over the private equity share. The failure of Oaktree showed the extent to which its future is being shaped by regulatory scrutiny as it struggles to rebuild its image among the various Royal commission inquiries.
In February 2021, it was reported that Victoria would establish a royal commission into crown Melbourne which they are still waiting for. Western Australia has announced an inquiry into the crown and has banned the crown from using overseas junket operators in the crown Perth as per the latest reports through the analysis made against Crowns Resorts.
The crowns gaming management also made a statement saying that “we look forward to welcoming our thousands of guests band employees as soon as possible. We are facing a lot of problems due to this pandemic as the situation cools down we will warmly welcome all our guests back.”
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