Star Entertainment Attempting Crown Resorts Takeover
Yet another party is now interested in buying troubled Crown Resorts. According to various reports, Star Entertainment Group is now offering to merge with the company. The deal will be worth approximately A$9 billion. This deal on paper appears superior to both deals offered by the Blackstone Group and Oaktree Capital Group.
Meanwhile, Crown has hired Landlease CEO Steve McCann as its new CEO. Also, Star is looking to move to a completely cashless casino system should they take over Crown Resorts.
Star Entertainment Group Offers A$9 Billion for Crown Resorts
The battle for control of Crown Resorts just got a bit more interesting. According to various reports, Star Entertainment Group is now looking to merge with Crown Resorts in a deal worth A$9 billion. Per the terms of the deal, Star is offering either 2.68 of its shares for each Crown Resorts share along with cash options of A$12.50 for every Crown share up to 25% of total shares.
This deal would have been monumentally superior to The Blackstone Group’s offer, but the company has now upped its offer as well. They are now offering approximately $12.35 per share. Blackstone already owns 10% of Crown shares.
Star Entertainment’s proposal for a merger with Crown wouldn’t merely create a gambling giant controlling casinos in most capital cities – it would also create a juggernaut of political influence, writes @BernardKeane https://t.co/TPCBuS0Yjl
— Crikey (@crikey_news) May 11, 2021
Looking to the future, the Star offer could bode better for Crown as they are not an existing shareholder. While Blackstone is not considered a bad actor in the current Crown saga, they still own a sizable portion of shares. A new party taking over control of the casino, particularly one in good standing like Star, could put regulator concerns to rest.
Leadlease CEO to Become New Crown Resorts CEO
On Thursday, Crown Resorts announced that Landlease CEO Steve McCann will become the company’s new CEO. McCann will be retiring from Landlease at the end of May. He begins his new role with the Crown on June 1st. He is also stepping down from Landlease’s board of directors.
McCann was originally planning to retire from Landlease in 2020 but held off his retirement due to the COVID-19 pandemic. He now joins crown at a critical time as the company looks to keep its remaining Australian licenses and is facing multiple buyout attempts.
Crown Resorts Appoints Steve McCann as its New CEO and Managing Director https://t.co/gUGg921PRf
— European Gaming Media (@EU_Gaming_Media) May 13, 2021
McCann commented in a press release from Crown over his signing. He stated, “I am looking forward to joining Crown at a crucial time for the organization and see a real opportunity to help drive significant shareholder value as the company addresses its challenges and emerges from the constraints of the pandemic.”
Star to Implement Cashless Casino Systems
Star is not just looking to purchase Crown Resorts. They are also looking to change the structure of the casino. According to reports on Friday, Star is looking to implement cashless gaming in Crown casinos.
The system will use a gambling card that will be linked to a player’s identity and to a player’s financial institution. Players would be able to deposit money onto these cards similar to how players deposit money at Australian online casinos. Players can then use the cashless cards to play blackjack, roulette, or any casino game in the casino.
Star and Crown to cease junkets and go cashlesshttps://t.co/xRgtukDTxK@thestarsgroup @CrownResorts #Australia #cashless #casino #gambling #betting #slots #sportsbook #covid #pandemic #reopening #players pic.twitter.com/QU3gn8sOti
— InterGame Ltd (@InterGameLtd) May 14, 2021
A move toward cashless gaming would need to be approved by regulators. It is a move that seems to be a no-brainer on many levels. The use of cashless gaming cards would prevent almost all forms of money laundering and gambling junket tours.
Some gamblers will find gaming cards unnecessary and some may even consider it an invasion of privacy. However, the cards are a great way to limit your spending and to manage your casino bankroll. Controlling your spending is one step toward problem gambling prevention. The process of receiving a cashless card may be a bit of a nuisance, but the benefits will be worth the short-term aggravation.
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