Is the Crown share price feeling pressure from the Victorian royal commission?
The post Crown (ASX:CWN) share price falls amid reports heads are on the block appeared first on The Motley Fool Australia. –
The Crown Resorts Ltd (ASX: CWN) share price is slipping today amid reports there’s increasing risk the Victorian royal commission could find the gaming giant unfit to hold its Melbourne casino licence.
Additionally, it’s rumoured Crown executives, including its chair, might soon be facing the chopping block as a result of Crown’s alleged failings.
At the time of writing, the Crown share price is $10.85 – 1.27% lower than its previous close.
While the fall may look slight, it’s a stretch behind the broader market. Currently, the All Ordinaries Index (ASX: XAO) is 0.75% higher today. The S&P/ASX 200 Index (ASX: XJO) is also in the green, having jumped 0.78%.
Let’s take a closer look at the news that may be driving the Crown share price down today.
What, or who, is at risk at Crown?
According to reporting by the Australian Financial Review (AFR) and The Australian, Crown might be in full damage control as it realises there’s a real chance it may not walk away from the Victorian royal commission with its gaming licence.
The royal commission is looking into Crown’s suitability to run its Melbourne casino after the Bergin inquiry found it was unsuitable to run its Sydney casino. The Bergin inquiry found Crown ignored money laundering and had company links to organised crime.
According to the AFR, heads may soon roll as Crown seeks to protect its licence. Its chair Helen Coonan’s may be the first on a spike.
Coonan has claimed to be heading a culture shift at the gaming casino, but both publications question her sincerity.
On 2 July, lawyers sent a letter on behalf of Crown to the Victorian Gaming Minister requesting a meeting and claiming it’s “in the public interest” that Crown holds a casino licence in Victoria.
The AFR stated the letter is evidence that Crown is beginning to panic.
Today’s movement of fhe Crown share price might well be evidence the market is feeling anxious too.
Crown share price snapshot
Despite falling 15% since 1 July, the Crown share price has gained 12% this year.
It has also gained 20% since this time last year.
The company has a market capitalisation of around $7.4 billion, with approximately 677 million shares outstanding.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.
The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.