Crown Resorts, Australia’s biggest casino operator has posted a drop of 28 percent in full-year profits. Much of it is to be blamed to slip in the VIP spending at the company’s top casinos.
According to the figures posted, Crown Resort’s net profit dropped 28 percent to $401.8 million over the year. It’s revenues from the VIP high rollers also slipped by 26.1 percent to $38 billion.
Executive chairman John Alexander blamed the allegations of money laundering and fast track visa processing for high-rollers especially from China for sinking VIP spending at Crown’s properties.
“Crown has zero-tolerance for criminal elements and we view these inquiries as an opportunity to continue our cooperation with regulators and other agencies,” said Alexander.
Investigation of allegations against crown resorts is ongoing. However, Crown Resorts have categorically denied the allegations of money laundering and their involvement in facilitating fast-track visas for VIP Chinese guests at their gambling facilities.
Responding to the allegations the company said that “Much of this unbalanced and sensationalist reporting is based on unsubstantiated allegations, exaggerations, unsupported connections, and outright falsehoods.”
The New South Wales (NSW) Independent Liquor & Gaming Authority are also investigating Melco’s purchase of Crown’s stakes. Recently, Melco Resorts & Entertainment announced an Aud $1.76 bn deal to purchase a 19.99 percent stake in Australia’s Crown Resorts from billionaire James Packer.