Profits Roll In For The Uncrowned Casino King

The Age

Wednesday January 31, 1996

Tania Ewing

Melbourne is poised to become the casino capital of Australia.

The latest figures reveal Crown casino as the most successful in the country, with gross profits expected to reach almost a quarter of a billion dollars this financial year.

International high-rollers are providing an increasing slice of the profit pie. This financial year, these big spenders should bring in $84 million - representing more than a quarter of all money earned from gaming tables. Eighteen months ago, high rollers' tables accounted for just 10 per cent of the total.

Mr Mark Siford, an analyst with Macquarie Equities Limited, predicts Melbourne, with its permanent casino, will eclipse Las Vegas. ``Melbourne's Crown casino in its permanent form with 350 gaming tables and 2500 machines (due to be opened in November) is truly staggering in size and will rival any casino property around the world."

A comparison of Australian casinos by Macquarie Equities has revealed that Crown casino is expected to make a gross profit, before gaming taxes, of $230 million - a jump of $23 million over the previous year. By comparison, Sydney casino will make $168 million and Western Australia's Burswood casino will earn $175 million.

The casino is also proving the most popular in Australia, with 20,315 visitors a day. These gamblers are serviced by the highest number of tables in the country - 200 - and more gaming machines - 1400 - than any Australian casino.

But Crown's winning punters can expect only an average return of $57 each, compared to $141.60 for visitors to the Burswood casino and $67.80 for Sydney casino punters.

The casino is expected to release its financial result for the six months ending December 1995 in February.

Mr Siford expects the profits of Crown casino to continue to rocket. Its present gross profit margin of $230 million comes despite the highest taxes in the country - $147.8 million for the 1995-96 financial year compared with the next highest - $24.3 million paid by Sydney casino. The tax bracket is expected to drop back from 34.9 per cent to 25 per cent in 1997 and to 20 per cent by the turn of the century.

State and territory gaming ministers will meet informally today in Melbourne to discuss how to control interactive gaming or gaming using the Internet which allows gamblers anywhere in the world to access casinos using their credit cards.

Industrial bans at a Melbourne manufacturing plant will have ``significant consequences" for the building timetable of the Melbourne casino, one of the unions involved said today.

     CROWN CASINO: Holding all the cards
     CROWN Casino
     * Gross profit (95/95): $230m
     ($23m more than last year)
     * Average return (per visitor): $57
     * Tax paid: $147.8m
     * Visitors: 20,315 per day (making it the most popular
     casino in Australia)
     * International high rollers contribute: $84m
     (more than 25% of money earned)
     * Junket tables contribute: 10% of money earned
     * 350 gaming tables & 2500 machines
     rivals any casino around the world
     * Perks for the high rollers:
        Free hotel accomodation
        Free meals
        Use of private golf course being
         built at Moorabbin
        Ensured return of a percentage of all losses
        Use of Crown's long range aircraft to ferry
         them to Melbourne

     SYDNEY Casino
     * Profit: $168m
     * Average return: $67.80 per visitor
     * Tax paid: $24.3m

     BURSWOOD Casino WA
     * Profit: $175m
     * Average return: $141.60 per visitor

© 1996 The Age

Back to News Index | Back to Home