Quarter 1 and Quarter 2 of the current financial year, both as individual entities and as a concentrated whole, have been an overwhelming success when you look at the entire online and land-based gambling industry overall.
So many countries, companies and individual operations report growth from minimal to massive all over the world – with some places going 7 in a row
with revenue growth and profit, and others steadily marching
up the hill towards a summit of financial pleasure.
Here we are looking at Australia but not the online market, as that’s more liquidated in a sense that a portion of the online gambling in casinos and sports is done so with international companies like bet365 or Ladbrokes, we are looking at the different land based casinos who are said to have bumped up their VIP levels and turnover in the 1st
quarter of the 2017-18 financial year.
The two rival brands, or operators, in Australia both are celebrating rises in revenue for the period with people close to the Crown Resorts saying that it’s not just a coincidence that their staff were finally, and we say finally, released from their prison holdings in a Chinese prison!
19 staff, 19, were held in China after they were found to be illegally promoting gambling in varying ways and means although it’s still never been concretely connected to any specific firm or region. These 19 were released at different times, some on bail soon after the initial arrests and the rest now released a short time ago – the key release, from Crown’s perspective, was the man who is directly in charge of and the man who powers the VIP sector, the High Roller Operations manager.
Jason O’Connor was amongst those detained and placed in the Chinese prison and was released towards the end of the Summer, right at that time, or just after to give him time to get a good wash, the quarterly reports come out and see this significant and promising surge.
The Crown Resorts reported damaging drops in turnover and revenues in the periods leading into the Summer, with the firm reliable on Chinese players in their casino’s – and the arrests on Chinese soil having a seriously negative effect on the incoming business. However, this Q1 report seems to say that the worst is behind Crown as they move forward into 2018 with the expectations of a 9% VIP operational increase by the end of the financial year.
Monique Rooney (Analyst)
Specifically, junket operators spoke to a material improvement across both Crown’s Melbourne and The Star’s Sydney properties in recent months versus the VIP volume lows seen in 2017.
With the market focusing on the weak domestic environment and not factoring much in the way of a recovery for VIP in 2018, we believe any rebound in growth would be taken positively.