- Crown Casino Perth sees it revenue drop by over $100 million
- A slow economy and the rise of sports betting are suggested as reasons
It has been reported by The West Australian that James Packer’s Perth casino has seen a revenue slump as Chinese High rollers, known as ‘Whales’, have been not visiting in the numbers expected.
Crown has invested some $650 million for the redevelopment of the Burswood site, and it remains to be seen how the latest figures will impact the casino – if at all.
What do the figures say?
The Western Australian Wagering and Gaming Commission presented figures in Australian state parliament this week which revealed that the Perth casino’s baccarat revenue had dropped from $330 million down to $212 million in the 12 months up to June 30.
The game of baccarat is notorious for being popular with Chinese high-rollers visiting the casino, hence the drop in revenue indicating that said high-rollers aren’t visiting in the numbers previously noted.
Roulette and blackjack saw a revenue decrease in a report which highlighted falling numbers of visitors to the Burswood location as the main reason for the decline – footfall is reported as dropping by 7.6% over the last four years.
Electronic Gaming now the source of income
Baccarat had for a long time been the main earner at the casino but due to the revenue slump, EGM’s (Electronic Gaming Machines such as video slots) are noted as the main source of income, generating $266 million in turnover for the same period.
The casino boasts over 2,000 electronic games on its floor, featuring a host of titles such as Jackpot Vault: Fine Diamonds and 5 Dragons. It’s worth noting that, despite taking over Baccarat in the revenue stakes, these too still saw a slight dip in takings.
These fluctuation as noted by the report have led to the casino’s revenue reportedly dropping from $742 million in 2015-16 (up to June 30) to $622 million this year.
Slow moving economy to blame
This is not representative at all of Crown alone, however. The state lottery saw its figures drop by 7.7%. Lotterywest, chairwoman Heather Zampatti is reported as noting that the ‘rise of sports betting and synthetic lottery providers’ coupled with a slow-moving economy were the reason for the overall slump as Aussie punters have less disposable income to gamble with.
However, Zampatti was quick to point out that the results were ‘consistent with national lottery industry trends.”
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