Crown Resorts Ltd (ASX: CWN) are up around 3% after the casino made an announcement about Crown Melbourne’s operations.
Here’s why Crown shares are rising
Crown said that its Melbourne operations has received approval to commence the operation of a limited number of electronic gaming machines and electronic table games in accordance with restrictions agreed with the Victorian government.
There will be restricted operations with ten designated VIP areas, each with a maximum capacity of ten patrons with no smoking permitted.
Crown revealed that there will be physical distancing between patrons with every second electronic gaming machine and electronic table game deactivated.
Each patron will be restricted to 90 minutes per day of activity in Crown Melbourne. There will also be COVID-19 marshal for each area. There will also be enhanced hygiene protocols.
Gaming operations are expected to commence from Thursday, 12 November 2020.
After Victoria’s recent announcements about lifting restrictions, select retail outlets re-commenced operations from 28 October 2020, some food and beverage outlets recommenced operations from 2 November 2020 and Crown Towers Melbourne re-opened today.
Crown CEO Ken Barton said: “We have been working for some time with the Victorian Government and health authorities to determine how we can safely re-open Crown Melbourne and have developed extensive physical distancing and hygiene measures to allow re-opening in a safe manner. We are pleased to be able to commence the process of welcoming back our employees and customers to Crown Melbourne.”
Summary thoughts
Getting some patrons through the door will help start the process of beginning the recovery for Crown. It’ll take more than a limited number of people to get things rolling again. But the longer that Melbourne keeps reporting low/no cases of COVID-19, the more likely it is that Crown Melbourne will get closer to its potential earnings. However, international borders are still shut so that will mean VIPs from a number of countries still can’t visit yet.
I believe there are a number of other ASX shares from different sectors that could be better ways of playing the ‘reopening’ theme. Star Entertainment Group Ltd (ASX: SGR) could be a better idea. Tyro Payments Ltd (ASX: TYR) and Qantas Airways Limited (ASX: QAN) could also be options to consider.
