Crown Casino Surges Ahead of Sydney Harbour Casino in Australian Sharemarket

Strategic Insights -

Crown Casino's phenomenal success has left its Sydney rival, Sydney Harbour Casino, struggling to keep pace. The Australian Open Championship in Melbourne provided a coup for Crown, with golfer John Daly's massive win at the casino drawing international attention and earning Crown an estimated $300,000 in publicity alone. Meanwhile, Sydney Harbour Casino is grappling with a decline in attendance and a rejected application for a tax cut, pushing its share price down to $1.60. The dramatic contrast between the two casinos highlights the challenges facing Sydney Harbour Casino, which has underestimated the strength of Sydney's registered clubs and misjudged the market.

Key Takeaways:

  • Crown Casino's share price has increased from $1.80 to $2.50 in the past three months, while Sydney Harbour Casino's share price has declined from $1.80 to $1.60.
  • Crown Casino has exceeded lowly held expectations, while Sydney Harbour Casino has failed to meet high expectations.
  • Crown Casino's marketing strategy, which includes incentives such as luxury car prizes and linked jackpots, has been successful in drawing high-rollers.
  • Sydney Harbour Casino is struggling to compete with Crown Casino's marketing efforts and has been unable to capture the imagination of its home city.
  • Sydney Harbour Casino has underestimated the strength of Sydney's registered clubs, which house 72,000 gaming machines.
  • Crown Casino has 4500 parking spaces, whereas Sydney Harbour Casino relies on buses.
  • The NSW Government's rejection of tax cuts for high-rollers has been cited as a major factor contributing to Sydney Harbour Casino's profit downgrade.
  • Crown Casino's general manager of government affairs, Gary O'Neill, believes that Sydney Harbour Casino has misjudged several factors that have proved crucial to Crown Casino's success.

Statistics:

  • $250,000: the amount of money John Daly won at Crown Casino.
  • $300,000: the estimated amount Crown Casino earned in publicity from the Australian Open Championship.
  • $50,000: the amount Crown Casino paid John Daly to wear the casino's logo during the championship.
  • $1.80 to $2.50: Crown Casino's share price increase in the past three months.
  • $1.80 to $1.60: Sydney Harbour Casino's share price decline in the past three months.
  • 72,000: the number of gaming machines at Sydney's registered clubs.
  • 4500: the number of parking spaces available at Crown Casino.
  • 18,000: the forecast attendance figure at Sydney Harbour Casino.
  • 14,200: the actual attendance figure at Sydney Harbour Casino.

Sources:

  • John Morgan, Australian shares manager at Mercantile Mutual
  • Mark Siford, analyst with Macquarie Equities
  • Gary O'Neill, general manager of government affairs at Crown Casino
  • Peter Grimshaw, public relations manager at Sydney Harbour Casino
  • Andrei Hilliou, chief executive at Sydney Harbour Casino
  • The Sydney Morning Herald
  • The Australian Financial Review
  • The Australian