Crown Resorts recently reported a major loss of 125 million dollars for its 2022-2023 financial year that ended on 30th June. The casino reported financial penalties that were levied against the firm for its multiple regulatory disadvantages at its top three casinos located in Australia.
Crown Resorts owns as well as operates Crown Perth, Crown Sydney, and Crown Melbourne. The organization runs Crown London, holding about 20% ownership in the Nobu Hotel and Restaurant group. Additionally, Crown owns about 50% of the Aspers Group, that is responsible for operating four casinos in the United Kingdom. Plus, Crown also has a digital gaming unit.
In a 12-month span ending on 30th June, Crown was able to generate a revenue of 1.7 billion dollars, which went up by 44% every year. Crown Melbourne happened to be the most responsible property since it’s the flagship property of the company, accounting for 882 million dollars of the income.
For the 2022 fiscal year, the revenue of Crown Melbourne surged, while Crown Perth cited an increase of 16% in revenue to 538 million dollars, and Crown Sydney came across a growth of 171 million dollars.
The remaining revenue of the group, around 590 million dollars, was obtained from different business segments of the company.
State Inquiries And Its Impact:
The Company did say that the 2023 fiscal year was actually a turnaround for the organization since the revenue of the resort increased as compared to the past 12 months in every segment. However, its high income was entirely offset by expenditures associated with the state inquiries related to its operations in New South Wales, Western Australia, and Victoria.
Each of the inquiries concluded that the company failed to protect its properties from getting used in money laundering. It was also discovered that the Crown barely did anything to keep these illicit criminal groups away from their properties, failing to thereby promote responsible and legal gaming.
Inspite of such grave discoveries, each of the inquiries allowed the Crown to eventually retain its gaming license. However, all the Crown properties are currently under stringent supervision of independent auditors and monitors, expenses that the Crown must pay for.
The company was hot with millions of dollars in different fines for regulatory shortcomings. Paired with remedial costs and legal fees, the Crown cited 1.9 billion dollars in expenditure directly related to the state inquiries.