Interactive
Australia – Crown sells its online division
By Lewis - 2 January 2018
Crown Resorts is to sell its 62 per cent stake in online betting firm CrownBet to a consortium including the unit’s Chief Executive for A$150m (US$117m). The deal, part of a series of divestments planned by Australia’s biggest casino company to cut debt, also includes loans extended by Crown to CrownBet.
In a statement from Crown Resorts, which had mulled offers from both Paddy Power Betfair and William Hill, the buyer of the stake is an entity associated with other shareholders in CrownBet, including the CrownBet management team led by CEO Matthew Tripp.
In mid-December last year, Crown Resorts had already signed several divestment deals as part of its ongoing debt reduction strategy, including the sale of its interest in a Las Vegas site for US$300m to a unit of Wynn Resorts. The company was expecting gross proceeds of US$264m from the sale of the Las Vegas site.
Crown has been retreating from a decade-long foray into the global gaming hub since 18 staff were arrested for gambling crimes in China in 2016 amid a broader crackdown on corruption.
Australia’s gambling industry has also seen much change over the last 12 months with the country’s biggest bookmaker Tabcorp Holding buying lottery owner Tatts Group for $4.7bn to create a gambling powerhouse.
