Casino General News

Wynn Resorts Looks to Expand Its Wings, Bids for Crown Resorts

Wynn resorts

Crown Resorts revealed that it had received a takeover offer from US-based Wynn Resorts. The offer is for an amount of AU$10 billion. If a takeover happens then, it may be the end of James Packer’s 12-year streak.

Australian gambling market is famous among Chinese tourists. The takeover will give Wynn Resorts an advantage despite the fall in spending from Chinese customers. This will be one of the biggest M&A deals if it goes through.

Argonaut’s executive director James McGlew was of the view that Crown Resorts would have liked a bigger offer. However, the discussions are in the initial phase. Mr. McGlew’s company holds shares in the Australian casino company.

Majority owner James Packer who has 47% stake in the company is expected to make AU$4.7 billion if the deal goes through. Mr. Packer had resigned from his investment company Consolidated Press Holdings (CPH) and Crown Resorts in 2018. He is battling mental health issues and continues to recover.

The shareholders of the company are also expected to get a reprieve; Crown Resorts saw arrests of 18 of its employees over casino marketing legislation in China in the year 2016. After the events of 2016, the company changed its strategy and focused more on the Australian business.

Crown Resort’s expansion in the Asian region is on halt ever since. The company faced fierce competition in Macau from Wynn Resorts. The gambling company relied on Chinese travelers who visited Australia. If the deal goes through then, Wynn will own one of the luxury casino Barangaroo situated in Sydney worth AU$2.2 billion.

Wynn Resorts has properties across the United States and Macau. The company did do a big promotion of a resort in Japan. The Asian country has been on the radar for Crown as well as one of the potential regions for expansion.