Crown Resorts Ltd (ASX: CWN) has issued its defence against the allegations made against it over the past few days.
Crown Resorts is one of Australia’s largest gaming and entertainment groups. It operates two integrated resorts in Melbourne and Perth. Crown also fully owns and operates Crown Aspinalls in London, one of the high-end licensed casinos in the West End entertainment district. It is currently developing Crown Sydney at Barangaroo.
Crown’s Defence
As a reminder, Crown had been accused of working with junket operators that it perhaps shouldn’t have.
Nine Entertainment Co Holdings Ltd’s (ASX: NEC) 60 Minutes and reporting in Nine’s newspapers The Age and The Sydney Morning Herald reported on allegations of links between organised crime and the ‘junket operators’ that bring Chinese gamblers to Crown’s casinos.
We also learned that certain aspects of the allegations had been referred to the Australian Commission for Law Enforcement Integrity by the Federal Government.
Yesterday afternoon the casino operator issued a response. It said i was going to fully co-operate with any investigation and that it takes its legal and regulatory responsibilities very seriously.
Crown said it has a comprehensive anti-money laundering and counter-terrorism financing program which is subject to regulatory supervision by AUSTRAC. Crown said it works closely with all of its regulatory agencies, including law enforcement, both state and federal.
The casino business also said that it provides a range of information in a proactive manner consistent with its obligations, including reporting transactions over $10,000 and suspect transactions of any value.
Crown’s final defence point was that it has a robust process for vetting junket operators with whom it deals and undertakes regular ongoing reviews of these operators in the light of new or additional information that comes to its attention.
Is Crown A Buy?
Crown earns a sizeable of money from its Asian VIPs from VIP gaming as well as staying hotels and other activities, so it’s important Crown doesn’t suffer in this area. But, Crown Sydney is on the way – it has a boost in earnings coming up.
But will it boost Crown’s earnings enough? I don’t know, that’s why I would prefer to own the shares in the free report below instead.
[ls_content_block id=”14945″ para=”paragraphs”]
[ls_content_block id=”18380″ para=”paragraphs”]
