Crown Resorts has decided to close one of its two gaming floors at its newly-opened Sydney property due to what it called “macro-economic challenges”. An Asian gaming expert said the decision came as a result of the ongoing crackdown on illegal gambling and junkets in China which has been the top source of high-spending VIP customers.
VIP Market Shrinking Due to China’s Junket Crackdown
Crown Sydney, which began operating in August 2022 under a conditional license, originally had two gaming floors both dedicated to high rollers but they will now be consolidated into just one gaming area due to lower-than-expected visitor numbers. The closure of the “Mahogany” floor resulted in nearly 100 job losses, though Crown stated that the affected employees would be transferred to its other properties in Australia.
Macau-based Asian gaming consultant Ben Lee said Crown Resorts Sydney could not rely on VIP players nowadays, especially with China’s ongoing crackdown on junkets. He also does not expect Australia’s VIP market to bounce back fast even though the gaming sector in South East Asia is continuing to recover.
Pokie Machines a Viable Option for Crown Sydney
Crown Sydney’s casino business may still thrive if the operator considers other options, such as setting up pokie machines, according to Dr. Charles Livingstone who works at Monash University as a gambling researcher.
Agreeing with Livingstone’s views, Lee said that while Crown Sydney is not allowed to run pokie machines at the moment, it’s not entirely impossible, given that the casino already offers electronic table games.