Crown Resorts, the leading Australian gaming group, told the Australian Securities Exchange this week that it will be selling off its majority stake in CrownBet online gaming site.
Crown Resorts currently owns a 62% stake in the online gambling business, but due to plan to dispose of some of its assets, it will be selling this stake to a group of investors which includes CrownBet's chief executive, Matthew Tripp.
Crown Resorts is expected to earn $150 million through the sale of the online sportsbook, with the divestment expected to go through by the end of next month. Crown told the Australian Securities Exchange that the deal was subject to the buyers arranging financing in a timely manner.
Crown to Raise $700 Million
On December 14th last year, Crown Resorts announced that it would be divesting from a number of its assets in a bid to raise nearly $700 million.
Besides the proceeds from the sale of CrownBet, Crown Resorts also hopes to make money from selling off a vacant lot it holds in Las Vegas where it once planned to build a casino. The 34.6 acre plot was sold to Wynn Resorts at a price of US $300 million, and the deal is expected to close at the end of January. Crown Resorts is also hoping to sell its stake in the international gaming giant, Caesars Entertainment Corporation, with its shares valued at US $54 million.
Crown Resorts will also sell two floors of its luxury development at the Crown Sydney in Barangaroo to its executive chairman, James Packer. The casino mogul will pay Crown Resorts the sum of $60 million for the two residential floors.
Tumultuous Year for Australian Gambling
2017 was a tumultuous year for Australia's gambling industry. A giant gambling powerhouse was created late last month when the country's largest bookmaker, Tabcorp Holding bought over the lottery owner Tatts Group for a whopping $4.7 billion.
The federal government also introduced some far-reaching clampdowns on the online gambling industry, including an all-out ban on online poker.