High-rollers fleece Packer By Jane Schulze February 25, 2005
BIG-SPENDING Asian gamblers have had one of their rare winning streaks at Kerry Packer's Crown casino.
Crown's parent company, Mr Packer's 36per cent-owned Publishing & Broadcasting Ltd, revealed that Asian gamblers had beaten the house for the first time in three years. Despite those losses, PBL yesterday said it would push ahead with its Asian gaming joint venture with the Hong Kong-based group Melco International Development.
The deal, announced in November, remains subject to regulatory approval in Victoria and Western Australia, where PBL owns the Crown and Burswood casinos. But PBL said it had completed due diligence and would invest $US163million ($207million) in the venture within two weeks.
"I believe this is an appropriate investment for the continued growth of PBL, and I am delighted we are able to proceed," PBL executive chairman James Packer said.
Melco is chaired by Macau gaming mogul Stanley Ho, and Victorian and West Australian gaming laws require their regulators to approve any "associate" of PBL given its ownership of their casino licences.
But the US state of Mississippi last week approved a venture between Mr Ho's daughter Pansy and the US gaming giant MGM Mirage planned for Macau, increasing the chances of Melco gaining approval.
PBL is also believed to be teaming up with Melco to bid for Singapore's new casino, bids for which are due on Monday.
But no further details were available as executives from PBL refused to talk to the media.
Meanwhile, the losses to Asian gamblers hit PBL's half-year results, also released yesterday, with gaming earnings falling 5.1per cent to $184.8million despite the acquisition of Perth's Burswood Casino in September.
PBL's Nine Network and Australian Consolidated Press lifted earnings 9per cent and 18.8per cent respectively, pushing group net profit up 4.5per cent to $278.8million. PBL lifted its interim dividend to shareholders from 15c to 27c a share, bringing Mr Packer's half-year payout to $65.15million.
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