I can’t imagine there will be too many punters out there feeling sorry for the billionaire casino mogul James Packer when he complains about an unlucky streak. High rolling punting whales have had a better than usual run with both the Melbourne and Perth casinos run by Packer, with the two of them reporting poor casino win rates. At the recent Crown annual general meeting he said “the punters are killing us!”
Packer said “Our VIP businesses are almost $100 million below the theoretical result less than four months into the financial year due to an adverse win rate or put simply, bad luck.”
With the number of poker machines they stuff into those casinos, I can’t imagine $100 million would be too much to worry about. Still, it’s no picnic owning a casino as there’s always the threat of the government hanging over your head, wanting to change rules or to increase their tax revenue. I enjoy visiting casinos but I would never buy shares in them.
Packer is also pushing forward with a $2 billion casino in Las Vegas and then there’s also the Sydney casino in the new Barangaroo development, so there’s plenty on the cards for Crown.
The billionaire casino mogul is still in negotiations to buy the NRL premiership-winning South Sydney Rabbitohs. He plans to buy the 37.5 per cent stake owned by Peter Holmes a Court. We might see more of James and Russell Crowe sitting together in the crowd next year.