The Crown Resorts Ltd (ASX: CWN) share price will be under renewed interest from investors today. The company has garnered further attention after releasing new updates to the market. At the time of writing, the Crown share price was down 0.6% to $9.70. Crown to resume operations in Melbourne Crown’s most recent update informed investors
The post Why investors are watching the Crown (ASX: CWN) share price appeared first on The Motley Fool Australia. –
The Crown Resorts Ltd (ASX: CWN) share price will be under renewed interest from investors today. The company has garnered further attention after releasing new updates to the market. At the time of writing, the Crown share price was down 0.6% to $9.70.
Crown to resume operations in Melbourne
Crown’s most recent update informed investors that the company will resume operations at its Melbourne casino precinct from midnight tonight. The news follows the Victorian government rolling back restrictions following a snap, 5-day lockdown announced on the 12 February.
Despite relaxed restrictions, Crown’s gaming operations will have limitations. The company’s gaming floor is limited to 50% of maximum capacity. Similarly, each indoor space will be limited to 300 patrons.
Response to the WA independent inquiry
Earlier today Crown also provided a response to an independent inquiry initiated by the Western Australia (WA) government.
An urgent meeting of WA’s Gaming and Wagering Commission concluded that an independent inquiry be undertaken. The intention of this was to assess Crown’s suitability to hold the state’s only casino licence. According to the Commission, they are taking measures to ensure that the inquiry has the powers of a Royal Commission.
In a statement released earlier today, Crown noted that the company would “fully cooperate” with the inquiry and would “continue to engage with the WA Commission in relation to its reform agenda and any further remedial steps”.
What is driving interest in the Crown share price?
The Crown share price has faced scrutiny from investors following a scathing report from Commissioner Patricia Bergin. The report follows a public inquiry into the company, which uncovered allegations of money laundering.
Highlighting issues, the Bergin report deemed Crown unsuitable to operate a new Sydney casino at Barangaroo. Additionally, determining through an 800-page report that Crown needs to make sweeping cultural changes if it wants to be considered a suitable operator in the future.
The fallout continued, with Crown’s Chief Executive Officer and Managing Director stepping down last week amid the chaos.
How has the share price responded?
The Crown share price has had a muted response despite the chaos. At the time of writing, shares in Crown are trading relatively flat for the day.
Over the past 52 weeks, the Crown share price has tanked more than 17%, with the COVID-19 pandemic weighing heavily on the company.
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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.