Crown shares flat, blames media for disappearing whales

Could Crown Sydney be a huge hit for investors?

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Crown Resorts Limited (ASX: CWN) shares traded flat today after it provided a brief trading update at its Melbourne AGM.

In Australia for the period 1 July to 20 October 2019 revenue from main floor gaming (ex VIP) was up 2%, while main floor non-gaming revenue was flat on the prior corresponding period.

However, the big problem is the 46% drop in VIP or 'whale gambler' turnover at its Australian resorts.

The high rollers have disappeared from Crown's casinos on the back of a serious clampdown by the Chinese government on the promotion of Australian gambling junkets. 

In June 2017 up to 19 China-based Crown employees 'pleaded guilty' to illegally promoting gambling in China, with fines and serious jail terms handed out.

Unsurprisingly, Chinese high rolling gamblers are not visiting Crown's Melbourne casino in as greater numbers anymore. 

Crown has also faced Nine Entertainment media allegations that its casinos attract all sorts of morally dubious visitors and are targets for money launderers.

Today, Crown's chairman John Alexander attacked the "quality of the journalism" covering Crown. Mr Alexander labelled it "sensationalist" and like nothing he'd seen in 50 years.

However, it looks like the disappearing whales may be Crown's own fault. 

The river card for investors remains Crown Sydney that is still expected to open over the first half of 2021.

Crown's $2 billion bet on the hedonism centre could prove an irresistible draw for overseas whales and Sydneysiders. It will also provide stiff competition to Star Entertainment Group Ltd (ASX: SGR). 

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. 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.

More on Share Market News

Stock market chart in green with a rising arrow symbolising a rising share price.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a massive day for the ASX 200, with a new all-time high recorded.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Technology Shares

This ASX tech stock rocketed 60% in March! Can it keep on delivering?

After soaring in March, the ASX tech stock is now up 169% since this time last year.

Read more »

Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A young women pumps her fists in excitement after seeing some good news on her laptop.
Share Gainers

Why Mesoblast, Newmont, Pilbara Minerals, and Platinum shares are jumping

These ASX shares are ending the week strongly. But why?

Read more »

a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.
Opinions

2 of my top ASX 200 shares to consider buying before April

I would happily exchange dollars for these two shares right now.

Read more »

Father in the ocean with his daughters, symbolising passive income.
Dividend Investing

I'd spend $8k on these ASX 200 shares today to target a $6,102 annual passive income

I believe these ASX 200 shares will continue rewarding passive income investors for years to come.

Read more »

Three businesspeople leap high with the CBD in the background.
Share Market News

Boom! ASX 200 blasts to new record highs

ASX 200 investors just sent the benchmark index into uncharted territory.

Read more »