Crown Resorts Ltd (ASX: CWN) is facing an inquiry, how will this affect the share price?
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 Resorts Faces An Inquiry
Crown Resorts said it has been informed by the NSW Independent Liquor and Gaming Authority that it will be conducting an inquiry.
What is the inquiry about? Well, it’s looking into the proposed sale of shares of Crown Resorts from James Packer’s CPH Crown Holdings to Lawrence Ho’s Melco Resorts & Entertainment – a Hong Kong-based casino operator.
The sale has been announced by Crown Resorts, but the sale is supposedly yet to go through.
The NSW Independent Liquor and Gaming Authority is looking into this transaction under section 35 of the Casino Control Act 1992 as well as various matters raised in recent media reports published by Nine Entertainment Co Holdings Ltd (ASX: NEC) media relating to Crown.
It has issued notices to relevant Crown parties and other parties compulsorily seeking documents and information for the inquiry.
One of the reasons for the inquiry is to ensure that the management and operation of a casino remain free from criminal influence or exploitation, also so that gaming in a casino is conducted honestly and controlling the potential of a casino to cause harm to the public interest and to individuals and families.
Crown Resorts said it will fully co-operate with the inquiry.
Is Crown A Buy?
If the share price plunges then it could be a buying opportunity. And once Crown Sydney is complete it will add a significant amount to Crown’s earnings.
But, I’m not sure if owning Crown shares is worth all the trouble considering all of the issues over the past couple of years. Casinos are receiving more scrutiny these days.
I think I would rather own the shares in the free report below instead.
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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.