News: CWN ANALYSIS-After Macau and Vegas, investors ask what's next for Australia's Packer, page-17

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Crusader69

87 Posts.

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07/02/17

12:40

Post #: 22424855
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Originally posted by JoeGambler ↑

Crown Sydney will be members only but the turn over needed for entry is not 'fly in' chinese whales territory. It will probably be Teak Room type level or 'Gold' card. I can't be bothered digging up the articles mentioning the speculated on turn over levels, but with baccarat/blackjack and roulette as the main games turn overs can get very large on relativley small outlays.

There is also the reality of members bringing guests in. If certain memebership levels have 2-3 guests allowed this is obviously good for business and caters to cashed up people that don't gamble a lot and wouldn't normally get membership, but have a friend who does.

I think it is fair to say the casino will be modelled on The Mahoganay Room, as mentioned in media, but less turn over required. There probably will be at least a couple of rooms like Melbourne as well. For instance, 'Harbourside Room' as the entry level offering and then a room 'above' this.

Reality is, once the casino is built there is a foot in the door and there are ways to increase the avaliability of the casino while making it look 'exclusive'. The Teak room in Melbourne is a great example because the reality there is it populated with relatively middle income people that just happen to gamble a large proportion of their income.

I know this sounds evil but my instincts tell me that Crown Sydney is more about tapping the local market long term, and the 'high roller' 'tourists' element is not really the core objective. At the very least in the long term wages will go up but the entry requirements will stay the same, if not lower, and Crown will get more tables to reflect population growth ect. The goal is premium mass market for sure.

Anyways that is a bit of a rant from me, cheers.

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Agree with your last comment re capture and grow local market is CWNs LT objective...the boom in Chinese tourists over the next decade will be cream on the cake!

CWN Price at posting: $11.17 Sentiment: Buy Disclosure: Not Held
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0 Great analysis

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