The Australian gambling giant will lose around USD 31 million due to the Macau case in China.
According to Deutsche Bank, the earnings of the Australian Crown Resort are estimated to fall for around 6% this year from USD 512.1 million to USD 481.2 million, reports gambling news. Although the gambling giant has noted considerable economic achievements in its Crown Melbourne casino, the gross revenue from the Melco Crown joint venture operating in Macau has lowered over the past 12 months for an incredible 36.2%.
This is a problem that imposes some worries for Crown Resorts, considering the fact that the company derives almost half of its revenues from the Melco Crown joint venture. These income streams mainly come through the stake they own there, which amount to 34% of the company.
Downturn in the revenues in London
In addition to the problems that Crown Resort is facing due to the anti-gambling legislation in China and the Macau case, they are also noticing a loss of revenues in London too. Their private gaming club in London believes that they will see a decrease in their incomes due to a downturn in the VIP sector.
However the situation on the domestic market looks brighter for Crown, report online gambling sites in Australia. Its VIP department there is expected to benefit mainly from the wave of Chinese tourists that come after Macau’s fall to Australia in order to gamble.