Crown has made good progress in implementing the reforms outlined in the Bergin Report, which deemed the company unfit to operate a casino in Sydney’s Barangaroo region.
The reforms included a AU$22.5m settlement to the New South Wales Independent Liquor and Gaming Authority (ILGA).
Crown CEO Steve McCann stated that the reform program was already underway before he joined the company and significant efforts have been made to continue on that path.
The business has been materially de-risked over the last 6 months with significant progress on the remediation plan, an overhaul of senior leadership and board, and all three resorts operating despite the challenges of the Covid-19 pandemic.
Crown has also faced an investigation from Victoria’s Royal Commission, which also found the company unsuitable to operate a casino in the region.
In Western Australia, an inquiry has been extended until March 2022 to allow for further investigations.
Crown has developed a remediation plan to address issues raised by regulators, including culture, responsible gaming, risk management, junkets, and VIP and significant players.
The company has also made changes to its senior management.
Dr Ziggy Switkowski is the new chairman, Simon McGrath is the chief executive of Crown Sydney, and Danielle Keighery is the chief corporate affairs officer and brand officer.
McCann announced that Crown Sydney is expected to open for gaming activity in early 2022 after being open for non-gaming activities.
The resort’s two gaming areas will open on a staged basis, subject to approval from ILGA.
The hotel portion of the resort has been operational since November, with 1300 employees during the pandemic.
All three of Crown’s domestic venues – Perth, Sydney, and Melbourne – have reopened with mandatory vaccination policies for customers.
Melbourne has seen a 75% increase in main floor gaming revenue and a 65% increase in non-gaming revenue for a two-week period ending on 5 December 2021 compared to the second half of 2020.
Perth has experienced an 8% increase in gaming revenue and a 31% increase in non-gaming revenue.
Crown’s revenue from domestic business has increased since the start of the Covid-19 pandemic, with 100% of revenue coming from local customers in 2021 compared to 87% in 2020.
Revenue from the company’s VIP program has fallen to 0% in 2021 compared to 13% in 2020.
Private equity firm Blackstone has made a takeover proposal for Crown, valuing the company at approximately AU$8.46bn.
Crown has rejected the offer but has invited Blackstone to make another proposal.
The priority for Crown is to open in Sydney and showcase the value of its assets to the market after the pandemic.
