Crown Resorts says cost-of-living pressures are changing how Australians spend at its casino resorts, and that it is adjusting its business accordingly. The comments came from chief executive Ciaran Carruthers in a recent interview with Sky News, as reported by trade publication Casino.org.
What the CEO said
According to the report, Mr Carruthers said inflation has reduced discretionary spending, and that the effect has been felt at Crown Melbourne, Crown Perth and Crown Sydney. "Certainly, we're not immune to the impact of the inflationary pressure and the 13 interest rate increases over the past 18 months," he said. "It's having an impact on us, and we're having to change our business model as a result."
"Certainly, we're not immune to the impact of the inflationary pressure and the 13 interest rate increases over the past 18 months. It's having an impact on us, and we're having to change our business model as a result." – Ciaran Carruthers, Crown Resorts CEO, speaking to Sky News
These are the chief executive's own assessments. The report does not provide revenue, visitation or gaming turnover figures to quantify the decline, and no such data was disclosed in the source material.
A broader customer pitch
Mr Carruthers said Crown is lessening its dependence on gaming operations and luxury offerings. He said the company's marketing is aimed at telling a wider range of potential customers that they "don't have to be a VIP" to gamble at a Crown casino, or to stay, eat or drink there.
He also said the company has worked on "rehabilitating our brand" after what he called "a bad couple of years" in terms of public perceptions. He described Crown as "so much more than casinos", pointing to restaurants, bars, live music, shows, spas and hotels. According to the report, Crown is more conscious of different budget levels, with more casual dining options planned for its resorts in the coming years and more well-priced shows in development. No timeframes, locations or costs were given.
From a consumer-protection perspective, the stated strategy of inviting a wider audience, including people who would not previously have been regarded as high-end patrons, is worth noting. The source does not say what responsible gambling or player safety measures accompany the shift, and it does not address them.
Crown Sydney and the old model
Mr Carruthers spoke from Crown Sydney, the $1.5 billion Barangaroo development overlooking Sydney Harbour. The report says it was a legacy project of Crown founder and former CEO and chairman James Packer, and was conceptualised in 2016 as an ultra-luxury destination with 76 high-end residential units and 349 hotel rooms.
Mr Carruthers said the business model used by Mr Packer and the former leadership team was flawed. He said Crown Sydney was built for a model that no longer exists, and that the market for high-end gamblers has moved towards people visiting for reasons other than gambling alone.
Regulatory backdrop
The report describes Crown as being in its "next chapter" after several inquiries and royal commissions that found the company failed to adhere to regulatory rules and to prevent its gaming floors being used by criminals to launder money. According to Casino.org, Crown kept its three casino licences but remains under the close supervision of government-appointed monitors. The source material does not name the monitors or detail the conditions attached to the licences.
Mr Carruthers became chief executive in July 2022, replacing Steve McCann, who led the company's organisational and management restructuring. Before joining Crown, the report says, he worked in Macau at The Venetian and Wynn.
The story concerns land-based casinos. Online casino services remain prohibited in Australia under the Interactive Gambling Act 2001.