Crown Resorts Share Price up Despite Investigations
Shares of Crown Resorts Ltd [ASX:CWN] have gone up 0.42% this morning after closing at $11.86 yesterday.
This may come as a surprise to investors given the recent announcement that the entertainment company will be investigated regarding allegations of fast-tracking visas and money laundering.
As one of Australia’s leading entertainment groups, Crown Resorts Ltd is an integrated resort that consists of entertainment services, convention facilities, shopping, world-class gaming, dining and extravagant accommodation. Not only this, but Crown Melbourne is the largest casino in Australia, making Crown Resorts a major attraction for tourism.
Crown Resorts Investigation
The investigation comes after media reports from The Age, Sydney Morning Herald and Channel Nine’s 60 Minutes linking Crown Resorts to drug traffickers laundering money, involvement with organised crime in China and special treatment given by Australian government employees.
Crown’s Board of directors responded with an advertisement placed in papers such as the Herald Sun, stating:
‘As a board, we are extremely concerned for our staff, shareholders and other stakeholders, as much of this unbalanced and sensationalised reporting is based on unsubstantiated allegations, exaggerations, unsupported connections and outright falsehoods
‘As an ASX listed company and a Board we are always striving to ensure we have the highest levels of governance and a commitment to the highest standards.
‘It is deeply disappointing that the media involved in these inflammatory stories have not upheld the same principles.’
These allegations further damage their already in-question reputation, which, two years ago, saw 19 (previous and present) staff members convicted of illicitly promoting gambling in China, and are still currently being investigated.
Despite all of the reports that have come out recently, there is still yet to be confirmation of a separate investigation into the media reports.
MP Andrew Wilkie had pushed for a parliamentary inquiry, but was rejected by the House of Representatives.
While at the time Crown’s share price had fallen amidst the media reports, it seems to be making its way back.
As for the future possibility of an investigation taking place, it seems that Crown Resorts has remained reasonably firm throughout the past week and may have nowhere to go but up from here. Whether their share price will do the same though, is yet to be seen.
For Money Morning
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