The Motley Fool

Why the Crown Resorts share price sank lower on Monday

The Crown Resorts Ltd (ASX: CWN) share price had a disappointing start to the week on Monday.

The casino and resorts operator’s shares fell by over 4% before closing the day just over 3% lower at $12.26.

Why did the Crown Resorts share price sink lower?

Investors were quick hit the sell button on Monday after the company was the subject of a series of reports published by The Age, The Sydney Morning Herald, and 60 Minutes.

According to the reports, the company has been accused of using junket operators (middlemen who bring high rollers to casino) with links to drug traffickers.

Crown Resorts has denied these accusations and stressed that it is not in breach of Chinese law and advised that it has not been charged with an offence in China.

A spokesperson told 9News that the company “refutes any suggestion that it knowingly exposed its staff to the risk of detention in China. Crown has a robust process for vetting junket operators with whom it deals and undertakes regular ongoing reviews of these operators in the light of new or additional information that comes to its attention.”

What now?

According to Bloomberg, there have been calls for the government to establish a parliamentary committee, which could hold public hearings into the allegations raised in the report and require witnesses to testify.

Independent lawmaker Andrew Wilkie said: “This has reached a point where the Australian government has to pay attention.”

Adding: “There is a very unhealthy nexus between Crown casino and the political establishment, and the law enforcement and other establishment. We have a systemic and a cultural problem, it will only be dealt with by a very high level review of the situation.”

This may have sparked fears of another Royal Commission-style enquiry into the industry, which could weigh heavily on investor sentiment.

Elsewhere, the Star Entertainment Group Ltd (ASX: SGR) share price dropped almost 1% lower on Monday and the SKYCITY Entertainment Group Limited (ASX: SKC) share price bucked the trend with a rise of almost 1%.

Looking for a lift after these declines? Then check out these top blue chip shares which have been tipped for big things.

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. The Motley Fool Australia has recommended Sky City Entertainment Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.