A few years ago, Crown Resorts, the leading gaming and entertainment company, was tangled in a massive scandal in Australia that ultimately resulted in an extensive review of its operations across the country by the government. In 2021, a probe uncovered alleged deficiencies related to anti-money laundering regulations, claiming that the operator failed to meet certain license obligations.
The 2021 report found evidence that suggested Crown Resorts didn’t conduct proper due diligence checks for junket operators that helped bring Chinese high rollers to its casinos in Australia. It was also suspected that some of those junket operators had ties to criminal organizations, further exacerbating the concerns about the company’s operations.
The massive scandal presented Crown Resorts with significant challenges as the operator has undergone a review of its business and had to implement changes to ensure compliance with regulations across Australia. The broader impact of the legal hurdle in Australia also affected the operator’s business in other parts of the world, as suggested by a new report.
This week, a report from the Evening Standard suggested that Crown London Aspinall’s casino, the exclusive private members club in Mayfair that is part of Crown’s assets in the UK, suggested that the casino has cautioned about “material uncertainty” about its ability to keep trading. As noted, the announcement came amid challenges the casino’s parent company is facing on the other side of the globe.
Uptick in Travel to Boost the Operator’s Performance
According to data from Company’s House, Crown London Aspinall’s revenue increased to £12.2 million ($15.2 million) for the year until June 30, 2023. The operator used this time to decrease its losses by approximately two thirds. Still, the reported losses for the period were £2.0 million ($2.5 million).
According to the operator, the missing restrictions related to global travel are expected to boost its finances. With that in mind, many of Crown London Aspinall’s customers come from overseas, which is why the casino expects a further uptick in performance.
Still, the operator explained: “the outcomes of the regulator’s decisions and the financial implications of the group give rise to the existence of a material uncertainty that may cast significant doubt on the group’s ability to continue as a going concern and therefore that it may be unable to realize its assets and discharge its liabilities in the normal order of business.”
Despite recent hurdles, Crown Resorts gradually addresses previously raised issues. In Victoria, the company’s Melbourne property was recently found suitable to hold a license, the gambling regulator in the state, the Victorian Gambling and Casino Control Commission, confirmed last month.