[ad_1]
Updated ,first published
Crown Resorts has announced another round of job cuts in Melbourne as its casino business continues to suffer from cost-of-living pressures curbing customer spending, as well as regulatory restrictions introduced after serious breaches of its casino licence obligations.
Crown Resorts, which is owned by US financial giant Blackstone, announced on Tuesday that 200 of its Melbourne team will be cut from its 13,500-strong workforce in Victoria.
“Crown is reviewing its operations to respond to challenging economic conditions and ongoing regulatory commitments, while continuing to deliver world-class entertainment experiences for our guests,” a spokesperson said.
“Impacting roles is never a decision taken lightly, but these proposed changes are necessary to support Crown Melbourne’s long-term sustainability.”
Crown said it remains the largest single site employer in the state.
Victoria has already introduced mandatory carded play for electronic gaming machines at Crown Casino. But it has yet to implement the same restrictions at thousands of poker machines in pubs and clubs across the state, which puts Crown at a disadvantage.
Carded play enables gamblers to set limits on how much money they are prepared to lose before they start betting, but the measure is also designed to prevent money laundering by gamblers using cash.
Last year, Crown delivered its first profit under Blackstone ownership after cutting costs and selling non-core assets, including its private golf course in Melbourne, which it sold for $100 million.
But the business has struggled under the ownership of the US private equity firm, which acquired the casino operator for $8.9 billion in 2022, ending James Packer’s association with the casino operator and delivering him a $3.3 billion windfall.
A series of reports by The Age, The Sydney Morning Herald and 60 Minutes into Crown’s affairs in July 2019 triggered inquiries that led to Crown being deemed unsuitable to hold its casino licences and questioned Packer’s influence over its operations.
The royal commission into Crown’s suitability to hold a casino licence found in 2021 that the Melbourne casino had engaged in illegal, dishonest, unethical and exploitative conduct. This included the underpayment of state taxes, helping VIP gamblers circumvent currency laws and predatory behaviour towards vulnerable gamblers.
Crown’s lucrative business of attracting VIP gamblers from Asia suffered after a ban on junket operators associated with anti-money laundering breaches, which yielded a $450 million fine from Austrac in 2023.
That same year, carded play was introduced to all electronic gaming machines at Crown.
The implementation of carded play at Crown’s blackjack and roulette tables has been delayed until December 2027.
Last year, Crown claimed its Melbourne casino was the first in the world to mandate both carded play and pre-set loss and time limits on all its poker machines.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.From our partners
[ad_2]
