Why the Crown (ASX:CWN) share price on watch this morning

The Crown Resorts Ltd (ASX: CWN) share price is on watch after the company received a liquor licence for its Crown Sydney resort.

Aaron Teboneras

Author bio Aaron Teboneras is an ASX investment writer with a background in business, marketing and finance. He has been a contributor to The Motley Fool since 2020, covering market news, company announcements, broker views and financial results. Aaron’s previous notable appointments include National Australia Bank, and Computershare where he discovered his passion for the Australian sharemarket. Aaron has been investing for almost 20 years, using both fundamental and technical analysis to find opportunities. Aaron completed a Technical Analysis course with Mint Analysis in 2022 and is currently studying Training and Assessment. Outside the market, he has travelled to more than 45 countries and enjoys trekking, meeting new people and seeing different parts of the world. Areas of expertise ASX growth shares Founder-led companies Company announcements and financial results Fundamental and technical analysis Education Bachelor of Business from RMIT University Social media LinkedIn Instagram Favorite investment quote “If you don't find a way to make money while you sleep, you will work until you die.” — Warren Buffett

Published December 17, 2020 9:05 am AEDT

The Crown Resorts Ltd (ASX: CWN) share price is on watch this morning after the entertainment and gaming company received a liquor licence for its Crown Sydney resort.

After market close yesterday, the Crown share price finished the day at $9.85, up 1.2%.

What did Crown announce?

In the release, Crown advised that the New South Wales Independent Liquor and Gaming Authority (ILGA) has approved Crown Sydney for a liquor licence.

The new permit is on an interim basis for non-gaming areas in the building such as the hotel, bars and some restaurants. The liquor licence is valid from yesterday's update to 30 April 2021.

Crown will need to re-apply in order to extend its liquor licence for the period of 1 May 2021 and thereafter. This will allow the ILGA to assess suitability on whether to grant further approval following the ILGA enquiry. The outcome of the report is due early next year.

As Crown Sydney's casino remains closed until February 2021, the company is finalising its pre-opening activities for non-gaming areas. It is expected that it will open its doors to the public from 28 December 2020.

What did the liquor and gaming authority say?

ILGA chair Phillip Crawford said the authority was considering a further two liquor licences for other non-gaming areas of the casino, with a final decision expected within the week.

He went on to say:

The licence issued today will allow Crown to serve alcohol at the Crown Sydney resort, which includes a number of bar areas. The additional licence applications still to be determined apply to two restaurants at Crown Sydney.

Crown share price summary

The Crown share price has had a bumpy ride for the last 6 months, following COVID-19 restrictions, the recent money laundering investigation and class action lawsuits launched by shareholders.

While its shares are trading materially lower than its normal range of around $11 to $13, investors wil no doubt be hoping the worst is behind the company. Crown reached a 52-week high of $12.71 in January before falling to a decade low of $5.84 in March.

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