The Crown (ASX: CWN) share price lifts after last-ditch licence push

Crown has submitted a final plea for its Victorian casino licence ahead of judgement-day on 15 October.
The post The Crown (ASX: CWN) share price lifts after last-ditch licence push appeared first on The Motley Fool Australia. –

The Crown Resorts Ltd (ASX: CWN) share price is gaining today after the company made a last-ditch attempt to convince regulators to allow it to keep its Victorian casino licence.

Within its final submission to the Victorian Royal Commission into the casino operator, Crown stated the company’s licence benefited both the Victorian Government and the community.

Right now, the Crown share price is $9.21, 4.84% higher than its previous close.

Let’s take a closer look at Crown’s plea for its licence and what may happen to the Melbourne Casino Complex if the company fails to retain it.

Crown’s last resort

The Crown share price is gaining today following the company’s final submission to the Victorian Royal Commission.

The company’s latest argument is if it loses its casino licence, it would be forced to sublet the casino on Melbourne’s South Bank. According to Crown, that would make the complex less profitable and less enjoyable for visitors.

Within the submission, Crown stated:

[D]is-integration of the integrated resort would be more likely to result in reduced casino tax, significant inefficiencies, an inferior offering for customers and employees and a substantially diminished offering to tourism and the State of Victoria.

Crown currently holds a 99-year lease on the property. This means it would have to sublet the gaming segment to a competitor if it were unable to operate it.

However, Crown would still be able to operate all non-casino parts of the complex. Aside from the casino itself, the Melbourne Casino Complex houses hotels, restaurants, retail stores, residential and office accommodation, open space areas, and entertainment and recreation facilities.

While it looks like a desperate attempt to save skin, this might be good news for the Crown share price. It has reinforced that if the company loses its casino licence, it may still draw a profit from the complex. Albeit, a smaller return than its current profit.

According to a report in the Australian Financial Review last week, royal commissioner Ray Finkelstein has responded to such arguments before.

He has previously acknowledged there would be an adjustment period if another casino operator were to step in. However, the business is profitable and would continue to operate without major long-term impacts on Victoria as a whole.

Crown share price snapshot

Today’s gains aren’t enough to boost the Crown share price out of the red in 2021.

It has fallen 7% since the start of this year. It is also 1% lower than it was this time last year.

The company has a market capitalisation of around $5.9 billion, with approximately 677 million shares outstanding.

The post The Crown (ASX: CWN) share price lifts after last-ditch licence push appeared first on The Motley Fool Australia.

Should you invest $1,000 in Crown Resorts right now?

Before you consider Crown Resorts, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Crown Resorts wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Crown (ASX:CWN) share price edges higher despite Victorian lockdown
Crown (ASX:CWN) share price gains as Coonan plans to step down
Crown (ASX:CWN) share price up despite Crown Melbourne CEO exiting
ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high

These were the worst performing ASX 200 shares in July

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!