• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 15 June 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
  • 日本語
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
  • 日本語
No Result
View All Result
IAG
No Result
View All Result

Crown Resorts auditor outlines “going concern” uncertainty on COVID-19, licensing woes

Ben Blaschke by Ben Blaschke
Thu 9 Sep 2021 at 17:30
OPINION: Crown Resorts looks a natural fit for US casino giant Las Vegas Sands
41
SHARES
1k
VIEWS
Print Friendly, PDF & Email

An independent auditor’s report into beleaguered Australian casino operator Crown Resorts has indicated material uncertainty around the company’s ability to continue as a going concern.

The KPMG report, which was attached to Crown’s 2021 Annual Report, published Thursday, said it had concluded there exists material uncertainty related to going concern based on the potential impacts resulting from COVID-19 we well as ongoing legal and regulatory matters that threaten the operator’s casino licenses in Victoria, Perth and New South Wales.

Crown is currently awaiting the findings of Royal Commissions around its suitability to retain licenses for Crown Melbourne and Crown Perth, while talks are ongoing in NSW after the regulator found Crown unsuitable to hold a license for Crown Sydney in February.

In particular, KPMG made it clear that uncertainty exists based on a thorough examination of Crown’s financial accounts, including data used by the company for forward projections and “planned levels of operating and capital expenditures for consistency of relationships and trends to the Group’s historical results, particularly in light of recent loss-making operations impacted by COVID-19.”

The assessment took into account the “potential for further/future impacts to the Group, an estimated rate of recovery, and expectations of a return to historical levels of trading activity,” as well as the “forecast financial impact of uncertain future events, including COVID-19 and, where possible, potential outcomes of the legal and regulatory matters and implications for adherence to covenants and conditions.”

Crown said its net debt position currently sits at AU$892.9 million (US$658 million).

Notably absent from Crown’s Annual Report is any impairment on the value of its three casino licenses, although the company has placed an impairment estimate on each as part of a “sensitivity analysis”.

In case of cancellation of its Crown Melbourne casino licence, Crown said it would expect an impairment of the Crown Melbourne licence of AU$490.2 million, the casino management agreement asset of AU$108 million and prepaid casino tax asset of AU$43.9 million.

Cancellation of the Crown Perth casino licence would result in impairment of AU$440.4 million and the Crown Sydney license not being issued would result in an impairment of AU$100.0 million, plus probable impairment to the property, plant and equipment. Total impairment of all three licenses, excluding physical assets, would come to around AU$1.18 billion.

Crown’s annual report also outlined the recent development of a “comprehensive Remediation Plan” addressing failings in governance, compliance, responsible gaming and the management of financial crime risk uncovered during recent inquiries in NSW and Victoria.

“We have already made significant progress in implementing reforms,” the company said in a statement signed by directors Jane Halton, Toni Korsanos, Nigel Morrison and Bruce Carter.

“We have revised organisational structures, enhanced capability and increased resourcing across a number of key areas, including Crown’s Financial Crime, Compliance and Responsible Gaming functions.

“In addition, we have implemented other changes to Crown’s business practices, such as the introduction of the Significant Player Review process, which has resulted in the exit of a number of customer relationships, ceased dealing with all junket operations, restructured the VIP international business (including closing all offshore offices) and terminated the information sharing agreements that were in place with [major shareholder] CPH. There is also a substantial culture reform program underway.

“The significantly renewed Board and leadership team are committed to setting the standard expected across the organisation, and Crown’s employees have embraced the change with engagement, energy and commitment.

“We will continue to work hard to implement these reforms as we seek to repair Crown’s reputation and build the trust of our communities, regulators and governments, and investors as a responsible operator of outstanding quality integrated resorts.”

The findings of Victoria’s Royal Commission into the suitability of Crown Melbourne are due to be handed down by 15 October.

RelatedPosts

NSW state government moves to ban political donations from any clubs offering gambling

Report finds regulation of NSW gaming machines ineffective in supporting harm minimization outcomes

Fri 13 Jun 2025 at 05:45
Survey on Australia-China relations finds most Australians keen to encourage more Chinese tourism

International Betting Integrity Association to join judging panel for inaugural RTG Global Awards in Sydney

Thu 12 Jun 2025 at 07:46
Crown down but Star not ruling out junkets

Star calls for leniency as court hearing to determine size of AUSTRAC fine gets underway

Thu 5 Jun 2025 at 20:14
Survey on Australia-China relations finds most Australians keen to encourage more Chinese tourism

Regulating the Game launches Call for Speakers for 2026 event in Sydney

Mon 2 Jun 2025 at 13:24
Load More
Tags: AuditorAustraliaCrown MelbourneCrown PerthCrown ResortsCrown SydneyGoing concernKPMG
Share16Share3
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo
568Win

Related Posts

Greg Hawkins named Acting COO of Bloomberry and Solaire following Arasi departure

Greg Hawkins takes on permanent role as President and COO of Solaire parent Bloomberry Resorts Corp

by Ben Blaschke
Fri 13 Jun 2025 at 09:31

Bloomberry Resorts Corp, operator of the Philippines’ leading integrated resort brand Solaire, has confirmed the appointment of Greg Hawkins as Director, President and Chief Operating Officer at a board meeting held earlier this week. Hawkins had previously served as Acting...

Inside Thai IRs

Sands China completes full redemption of US$1.63 billion in notes due 2025

by Newsdesk
Fri 13 Jun 2025 at 05:57

Sands China Ltd, the Macau-facing subsidiary of Las Vegas Sands Corp, has completed full redemption of US$1.63 billion in outstanding notes due 2025. In a filing, the company confirmed that the notes were redeemed in full on 11 June and...

NSW state government moves to ban political donations from any clubs offering gambling

Report finds regulation of NSW gaming machines ineffective in supporting harm minimization outcomes

by Ben Blaschke
Fri 13 Jun 2025 at 05:45

A report by the NSW Auditor-General into the regulation of gaming machines has found that efforts by the state’s regulatory bodies to oversee the industry are not supporting harm minimization outcomes effectively. The detailed 47-page report, published Thursday, listed a...

Macau International Airport to expand into Taipa Ferry Terminal as passenger numbers keep rising

Macau to open up aviation market to more airlines in February 2026

by Pierce Chan
Fri 13 Jun 2025 at 04:32

The Macau Legislative Assembly (AL) has completed discussions on a new aviation bill, which is expected to take effect in February 2026. At that time, Macau’s aviation market will become fully open and the exclusive operating system no longer in...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文
  • 日本語

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • 中文
  • 日本語
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English
  • 日本語