Crown Casinos has reported a 53% in its profits, but the impressive financial boost has failed to impressive the casino operator. Crown blames renovations and the waning economy for the less-than-expected profit jump.
Crown operates casinos in Asia and Australia, and the economies in both countries have softened over the course of the past year. When a financial crisis strikes, the first thing that people cut from their budgets is leisure spending. This means that gambling and other forms of entertainment are no longer a priority for individuals who may have previously enjoyed gambling.
Renovations have also caused disruptions at Crown’s Melbourne casino location. The renovations were carried out, assuming that the economy would continue to thrive. However, a dismal economy simply highlighted the loss that the company would absorb thanks to Crown’s renovations.
High roller gambling among Asian players also suffered. While activity in this sector grew, it was much slower progress than it had experienced in previous years. This is likely due to the increase of competitor casinos in Singapore and Macau.
Going forward, Crown will work on its new Bangaroo casino development. The location will consist of a luxury six-star hotel and a world-class gaming room, which is likely to boost Crown’s profits in coming years.