The gambling regulator in New South Wales plans to review its 2014 approval for Crown Resorts to build a six-star property in Barangaroo, Sydney, after Macau’s Melco Resorts & Entertainment bought a 19.9 percent stake in the Australian operator, Reuters reports.
Part of the condition for the 2014 approval was that Crown would not do business with the father of Melco CEO Lawrence Ho, Stanley Ho, or his associates. The elder Ho was at the time under investigation in Australia and the United States for possible ties to organized crime. He has denied the charges and Crown has previously stressed the younger Ho’s business interests are separate from his father’s.
The regulator told the news agency in an email that it would “now review all relevant issues when considering the required approvals and probity checks”. The regulator said it had “carefully considered” Crown’s relationship with Melco.
Crown resorts’ share price fell 3 percent on Friday to below the $13.00 Melco agreed to pay for its stake. The stock had baked in a takeover premium after the disclosure last month it had been in talks with Wynn Resorts about a possible acquisition.
This Dossier results from the “Life After POGOs” editorial project by Asia Gaming Brief which culminated with a pop-up digital forum on 9th December to discuss potentials ramifications in the industry.
Kenanga Research expects Malaysia's casino operator to rebound more swiftly than its number forecast operators, as border restrictions ease. The sector valuation remains attractive as gaming stocks were still 15-26 percent cheaper than a year ago.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing
what 2020 may have had in store.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.