Image Source iag

Crown Resorts reports loss of US$125 million

October 27, 2023 World Casino & Hotel

Australian casino company Crown Resorts reported a loss of AU$199 million (US$125 million) for the fiscal year that ended on June 30, 2023. The main reason for this loss was the AU$3 billion (US$1.9 billion) in costs that came from well-publicized investigations into its operations in Perth, Sydney, and Melbourne.

Among the expenses were fines and the cost of creating new compliance procedures to recover its gaming licenses. Notably, Crown included a AU$450 million (US$283 million) settlement payment with AUSTRAC, Australia’s anti-money laundering organization, in its financial statements.

Thanks to increased sales at all three locations, the FY23 deficit was less than the AU$945.4 million (US$596 million) loss reported a year earlier. Revenue for Crown Melbourne increased from AU$939 million (US$592 million) in FY22 to AU$1.4 billion (US$882 million).

Crown Sydney’s sales climbed by 139% to AU$271 million (US$171 million), while Crown Perth’s income jumped by 16% year over year to AU$854 million (US$538 million).

Crown said that it would still have to deal with regulatory challenges in 2023 and that each of its Australian locations will have independent monitors controlling gaming operations.

The company has been aggressively developing remediation and transformation strategies in response to new regulations. It has also made investments in teams dedicated to compliance and responsible gaming, new technology for cashless gaming, and required carded play.

Notwithstanding the obstacles, Crown is reimagining its goods in Crown Sydney and Crown Melbourne and has launched a new rolling chip program. The Blackstone Group pledged to invest “hundreds of millions of dollars” in the redevelopment of the Melbourne building after acquiring Crown for AU$8.9 billion (US$6.5 billion) last year.