Crown Resorts: Actual Reasons For Failure

Crown Resorts

Crown Resorts has done many wrong things while running its Melbourne casino. Therefore, it has failed now. But the senior counsel of the company, Michael Borsky, said that Crown Resorts should continue its business. The public will not like its suspension or cancellation. He further narrated that the company can appoint an independent monitor or supervisor at worst for the direction of activities of the company.

Furthermore, this casino provides employment opportunities to almost 11,600 people. If the license is canceled, it will badly impact Victoria’s tourism industry. Besides, it is necessary to keep the casino’s revenue to Victoria’s treasury flowing. This looks like an optimistic take based on the evidence.

The commission has reported the revelations regarding Crown casino’s inappropriate conduct in various areas. The royal commissioner, Ray Finkelstein, identified illegal and inappropriate behavior in all the aspects of Crown Resorts in the last month. In addition, he compared Crown casino to a thief of the car who promises that he will not steal cars. Therefore, it is not in the public interest to reward such an unlawful business for a decade. On the other hand, some casinos are performing well. Therefore, their owners plan to remodel them like Grand Falls Casino is remodeled.

Crown Resorts
Crown Melbourne Casino

What Are The Options Available to Finkelstein?

Finkelstein has multiple ways. He can suggest Crown casino cancel its license. Besides, he can recommend Crown Resorts to rehabilitate its activities. It requires suitable supervision. In addition, the company can appoint a manager until it works to reform its agenda and goals. There can be a combination of appointing a manager until the business is sold or changes in the agenda.

But Crown Resorts cannot be trusted again. If Crown casino loses its license, there will be some intense consequences. Besides, someone else can run the casino. If the casino is in profit, someone else will like to run it for sure. But Crown casino does not have a lot to argue regarding its licensing issue.

A letter was written to the Victorian minister for gaming on July 2, 2021. Finkelstein interpreted this letter for short-circuiting the findings of the royal commission. The complete point of Crown casino is to contribute to Victoria.

Crown Resorts
Crown Resorts Casino

The Performance Details of Melbourne Casino

The normal operation year of Crown Resorts was 2018-2019. It contributed to Victoria’s tax revenue of almost $268 million in the form of gambling taxes. The sales tax revenue in 2018-19 is $29.2 billion. The gambling taxes are 0.8% of the sales tax revenue.

On the whole, the contribution of the gambling taxes is 8.4% of state tax revenue. The contribution of poker machine gambling in clubs and pubs is $1.12 billion. The Crown casino employs almost 11,600 people. This number is 0.32% of Victoria’s employees of 3.45 million till March 2021. The contribution of Crown Melbourne is $30 million of the total $6.3 billion of state payroll taxes. Henceforth, Crown casino contributes 0.9% of the total state tax revenue.

The Demerits of Crown Resorts

Indeed 11,600 jobs are important that make $300 million taxes in a year. On the contrary, there is a not useful Crown casino’s contribution of $7 billion in the annual costs. It is a gambling loss in Victoria. 36,000 Victorians are affected adversely by Crown casino directly. It has also affected a total of 216,000 partners, employers, and children associated with those gamblers badly.

In addition, if there is new management at Crown Resorts, no person will lose the job. There is a need to fire some executives and members only. Henceforth, the casino will continue to add to state revenue.

No Possibility of Business Continuation in the Crown Resorts

Indeed, It is not possible to continue the business operations at Crown Resorts. If some responsible gambling interventions take place with proper observation, revenue will decrease. If Crown casino continues to operate 1000 unlimited poker machines, the revenue will go down. In addition, if it removes indoor smoking and goes cashless, the revenue will decrease. Besides, if a criminal syndicate does not use Crown casino to launder money, the revenue will decrease.

After having a closed review, these effects are expected related to the operating practices in Victoria. The new operator will reduce the workforce and impose new operational requirements.

The Crown Resorts is not producing something from anything that does not make it a magic pudding. Further, it has transferred huge amounts from ordinary people to the shareholders. Henceforth, the results are harmful to gamblers and their families. It is harmful to Australia’s integrity to stop criminals from doing money laundering and removing political instability.

The profitability of Crown casino will affect any of the decisions of the royal commission. But the gain is reducing the gambling harm. It strengthens the enforcement of the regulatory system and the rule of law.

Crown Resorts
Crown Melbourne Casino

Summing Up

The Crown Resorts has failed already. It has made many mistakes while operating the Melbourne casino. The representatives of the company recommend continuing the business operations. But the royal commission has identified all the inappropriate and unlawful behaviors. In addition, Crown Melbourne employs 11,600 people. It contributes 0.9% to the state revenue. But it harms gamblers and their families. In short, business is not an option as usual at the Crown casino.

Related posts

Leave a Comment