Crown Resorts attempts to downplay its reliance on Chinese VIP gamblers

Australian casino operator Crown Resorts is attempting to downplay the impact of potentially having to curtail its lucrative Chinese VIP gambling business.

Crown held its annual general meeting on Thursday, during which it sought to reassure investors that last week’s detention of 18 Crown staffers, including its head of international VIP business Jason O’Connor, wasn’t a death blow to the company’s future earnings potential.

According to Crown, one-third of its revenues come from overseas visitors to its Australian resorts, while international VIP gaming programs account for “around a quarter” of FY16 revenue (actually 28%). Of this international VIP revenue, “approximately 12%” comes from visitors from mainland China.

Crown goes on to say that margins in its international VIP gaming program are “substantially lower” than Crown’s other businesses, meaning the share of profits derived from mainland Chinese VIPs is “substantially less than 12%.”