Casino conglomerate Crown Resorts has planned to lay off nearly 100 employees at its Sydney property along with closing down one of the VIP floors. The company has stated “macro-economic challenges” as one of the reasons for its decision which was taken earlier this week.
Crown Sydney, situated in the tallest building in Sydney, caters to high-rollers only. Its major source of VIP gamblers is China, but the Asian nation is going through its own economic issues. On top of that, the Chinese government is clamping down on junkets, affecting the inflow of high rollers.
However, it is also to be noted that Crown Resorts, as per ABC News, has been barred from dealing with junket operators after the company was found negligent in preventing money laundering at its Melbourne and Perth properties.
Apart from money laundering, Crown Resorts has also been facing a number of fines for failing to comply with other regulations. In one instance, the Victorian Gambling and Casino Control Commission (VGCCC) had fined Crown Melbourne A$120 million in November, 2022 for breaching its code of conduct for responsible gambling.
Coming back to Crown Sydney, it has been operating on a conditional licence since August, 2022. The company has stated that though it is laying off the aforementioned number of employees from its Sydney property, it will try to provide them employment at the Melbourne and Perth casinos. Also, the Blackstone-backed casino giant expects to reopen the VIP floor as and when footfalls rebound.
Entain to cut up to 10% of jobs
Entain, a prominent online sports betting and gambling company, has decided to lay off more than 50 employees which amounts to 10% of its total Australian workforce, reported the Australian Financial Review. The company, which owns a number of well-known brands including Ladbrokes, cited the change in spending patterns of patrons due to economic conditions, regulations and operation optimisation as the reasons for the layoffs.
The job cuts come despite the company claiming that it is experiencing “rapid growth in Australia”. As demand for its services rose the workforce was doubled over the past two years. But now with the changing macroeconomic situation the company feels compelled to rationalise its operations.