Scandals have seen Crown Resorts weakening in their recent financial reports. Reportedly, the Australian casino operator’s stocks dropped dramatically on Wednesday by 5.25%. These losses further show a lack of confidence for the failing firm after James Packer resigned as CEO again. For the most part, VIP gamblers and the Chinese economy are to blame.
Many Australian casinos depend on VIP players from Asia to make a profit. However, these players appear to be spending less after US tensions and a weakened economy. Of course, depending solely on high rollers from Asia is difficult when operators can’t advertise to them. After the 2017 scandal, where Crown Resorts employees were charged with illegally advertising, it’s no wonder the casino industry is struggling.
Macau Strategy Provides Hope
Instead of appealing to VIPs, Crown Resorts and other casinos could try a different approach. For example, Macau casinos are reporting higher profits from the general public. The choice seems to be paying off on the whole. Still, translating that type of appeal to Australia might be more difficult. In recent years, Australia has been fighting rises problem gambling rates.
Public opinions of gambling have recently turned sour, providing new laws and restrictions. Currently, Australia is aiming to ban offshore online gambling altogether and restricting any new casino resorts. Other laws ban any gambling ads during peak hours, with heavy fines for any operator failing to comply.
With Crown Resorts weakening, it’s possible that further restrictions could be on the way. Of course, extreme measures could backfire. Most communities depend on public funding, which is gathered from gambling revenues. Removing gambling altogether could see drastic reduction in taxes for organisations and communities. On the other hand, limits could help certain venues and gaming operations make more money. For further updates on this story, keep visiting Kiwi Casinos.