Crown, the Australian gaming company carved out of the Packer media and entertainment empire, more than doubled its gambling interests in North America yesterday, paying $1.75 billion (£858 million) for Cannery Casino Resorts, the owner of three casinos in Las Vegas and a racetrack in Pittsburgh. It said that the acquisition would significantly lift cashflows.
A week ago, James Packer, Australia’s richest man, formally split his media assets into a separate company to focus on the faster-growing casino business. During the past year he has raised A$5.15 billion (£2.2 billion) by selling three quarters of the company’s media assets into a joint venture with CVC Asia Pacific, the buyout group. He returned A$2 billion cash to shareholders through the split. The move was the realisation of a vision that began in the late Nineties when Mr Packer persuaded his reluctant father, the late media tycoon Kerry Packer, to expand into casinos. Last year, gaming accounted for more than half of the group’s revenue.
Now, the 40-year-old billionaire, whose family dynasty is said to have begun with his great-grandfather R.C. Packer finding “ten bob” at the races, is creating a global gaming empire in high-growth markets such as Las Vegas and Macau. He wants to expand in Europe, where the company has a 50 per cent stake in the Aspinalls casino business in Britain.
Crown also has a 50 per cent interest in Gateway Casinos Income Fund, the owner of nine casinos across Vancouver, Edmonton and Alberta.
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