Crown Perth Posts 10% Dip in Revenue

Casino results in Asia are just going down. Some of them are going in a tailspin whereas others are just noting mild withdrawals from their major markets. Regulation is rampant across Asia, indeed, and the results can be seen. From clamping down on gambling dens to fears that even mainstream operators will be corralled and restricted, the market blues are real.

Crown Perth Off the King’s Head

An established operator with tradition, the Crown Perth registered a 10% dip in its operating results, new data released by the Gaming and Wagering Commission has revealed. Between July 2017 and June 30 2018, the overall gaming revenue fell down to $400 million. Many things occasioned this slump towards the bottom, but one more notable than others – Baccarat.

Baccarat has long been one of the favorite products of Asian customers. The game has easily been outstripping poker and blackjack which are typically the preserve of the west. And so, Baccarat got hit with the game having to support a blow of regulation outlawing certain versions of it and revenues just dipping naturally. While the popularity of the game has stood high, the past 4 years have registered 57% drop in the revenue generated through it.

Crown Perth has been at the forefront of the luxurious segment, appealing to well-heeled Asian customers who have been prepared to spare a hefty sum playing the high-rolling title. The company even undertook a re-development plan that cost it nearly $480 million. This all seems to have been for naught in the cooling Baccarat climate.

A Drop Across the Board

Revenue has dropped pretty much across the board, with Blackjack and roulette losing around 10% each of their revenue over the same period. Slots and other gaming machines have surprisingly come to the rescue of the sector, though, helping Asia keep its head above head.

There have been a handful of reasons to be disappointed, too. Tencent, China’s largest telecoms and developer of iGaming titles, among other things, has been buffeted by a new ban targeting its video poker games. The increasingly hawkish stance of the Chinese government has been no small ill, stopping the results from improving.

Conversely, gambling still to be developing in Asia, despite the hostile climate occasioned by nature and man-made crisis, to name the recent typhoon which hit Macau and Hong Kong and force the activities to come to a halt. Not least of all, the spectre of a trade has also been throwing its spanner in the works of the industry.

Crown Perth Parts with James Packer

One of the most notable changes that the casino operator has had to deal with, though, doesn’t concern entirely its investment plan or the difficult times it has fallen on. It’s rather when James Packer, one of the longest-standing investors with almost 50% shares in the company, announced that he would be taking his adieux from the company.

This, though shouldn’t signal that gaming in Asia is dying. How could it? However, as storms are gathering, the road ahead promises to be treacherous.

Leave a Reply

Your email address will not be published. Required fields are marked *