Crown Resorts Share Price up Despite Investigations

By ,

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.

Five income payers to buy today (free report)

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.

What now?

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.

Ryan Clarkson-Ledward,
For Money Morning

PS: US–China trade tensions have actually created some incredible opportunities for Aussie investors. Click here to discover three unique plays on the US–China trade war.

About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

Ryan is also the Editor…

Crown Resorts Ltd Shares Up 8% on $8.87 Billion Takeover Offer (ASX:CWN)

Crown Resorts [ASX:CWN] shares spiked in morning trade by over 8% after the casino group received an improved takeover offer from persistent US investment titan Blackstone.

ASX 200 News Weekly Wrap — Magnis, Creso, Cettire, Crown and Commonwealth Bank

We review this week’s ASX news, from MNS and CPH getting caught up in ASIC probes to CBA shares tanking on their latest quarterly.

Crown Casino on the Brink, But What about the ASX Casino?

The ASX Casino is its own kind of beast, and a quick jaunt onto the pages of Reddit’s ASX­_Bets reveals a thriving culture of gambling interspersed with the odd nugget of sound reasoning.

Crown Share Price Soars on $8 billion Blackstone Offer (ASX:CWN)

The Crown Resorts Ltd’s [ASX:CWN] share price is up more than 18% in early trade after confirming an $8 billion offer from Blackstone. The Crown share price is up 18.4%, trading at $11.675 per share…

Crown Resorts Share Price Sinks as Directors Resign (ASX:CWN)

The share price of casino operator Crown Resorts Ltd (ASX:CWN) has fallen today following revelations that Crown is unfit to operate its Barangaroo casino. At time of writing the share price of Crown has fallen by 32 cents or 3.15%…

Crown Resorts Share Price Flat on New Operating Conditions (ASX:CWN)

At time of writing the share price of Crown Resorts Ltd [ASX:CWN] moved down 0.31% to trade at $9.76. Crown spent a large part of the year closed as COVID-19 shut down public spaces and forced people into lockdown…