Casino Industry Analysis
Recently, Crown casino declared that it decided to spend nearly $568 million to invest a new 500-room luxury hotel in Perth. WA government agreed not to be against a request for 500 extra gaming machines and 130 extra tables which would enable the capacity of Perth nearly as same as Crown Melbourne. The Executive Chairman, James Packer, was quoted as saying “This is not a great deal for me; this is a deal where I expect my share price to go down” (Australian Financial Review). In this essay, I will list all different types of business that run by Crown and describe them. Furthermore, this essay will conduct an industry analysis of gaming sector in Australia and present performance of Crown as well as its competitors Wynn. Also, Crown and Wynn will be compared under different regulations. At last, this essay will explain why Packer will make a decision to invest this project while the share price will go down.
Crown Limited (CWN) is one of Australia’s largest entertainment groups. The group’s core businesses and investments are in the integrated resorts sector. The Crown Entertainment Complex in Melbourne is one of the largest integrated resorts in the southern hemisphere, which owns a number of facilities including casino, hotels, function rooms, restaurants, shopping and entertainment services. Burswood Entertainment Complex was acquired in 2004 (Crown Limited, 2011). Burswood is Perth 's premier integrated resort encompassing a casino, two international hotels, a state of the art convention centre, the 20,000 seat Burswood Dome and award-winning food and beverage outlets (Crown Limited, 2011). The Aspinalls Club in Mayfair is a high end London based casino. It is only one of five licensed high end casinos in Londons prime west end entertainment district.
Melco Crown Entertainment Limited (Melco Crown) was initially established as a joint venture company in 2004 with Hong Kong listed Melco International Development Limited to pursue new gaming ventures in
Crown Limited (CWN) is one of Australia’s largest entertainment groups. The group’s core businesses and investments are in the integrated resorts sector. The Crown Entertainment Complex in Melbourne is one of the largest integrated resorts in the southern hemisphere, which owns a number of facilities including casino, hotels, function rooms, restaurants, shopping and entertainment services. Burswood Entertainment Complex was acquired in 2004 (Crown Limited, 2011). Burswood is Perth 's premier integrated resort encompassing a casino, two international hotels, a state of the art convention centre, the 20,000 seat Burswood Dome and award-winning food and beverage outlets (Crown Limited, 2011). The Aspinalls Club in Mayfair is a high end London based casino. It is only one of five licensed high end casinos in Londons prime west end entertainment district.
Melco Crown Entertainment Limited (Melco Crown) was initially established as a joint venture company in 2004 with Hong Kong listed Melco International Development Limited to pursue new gaming ventures in
References: Australasian Gaming Council, 2009, viewed at 15th August 2012, <http://www.austgamingc ouncil.org.au/images/pdf/2009_10_Database/db%202010%20web%20chp%2013.pdf> Crown Limited, 2011, viewed at 14th August 2012, <http://www.crownmelbourne.com.au/> United States Gambling Law, 2012, viewed at 15th August 2012,<http://www.worldcas inodirectory.com/american-casinos/gambling-law>