👉 Background: Crown Resorts is Australia’s largest gaming and entertainment company. We’re talking pokies machines, gourmet restaurants and a whole lot of hotel rooms with that casino-aftershave-smell. In 2021, Crown was founded to be unsuitable to hold a gaming licence due to alleged money laundering of millions in its casinos.

👉 What happened: But now, Crown and its new owners TPG, reckon  it is facing the triple threat:

• Reduced number of foreign tourists
• A decline in local workers in the cities
• New restrictions on gaming play - like time limits

👉 What else: Crown Resorts has announced that they will be slashing up to 1,000 jobs as a result of these challenges. It highlights the increasing challenge of companies operating in sin industries.

What's the key learning?

💡Sin industries refer to industries that deal with goods or services considered ethically or morally questionable. Think: gambling, tobacco or weapons.

💡 In these industries, legislation can move fast and strip profits almost immediately. Last year, the Victorian government forced Crown to put limits on poker machine losses per day and the maximum amount put into a poker machine was cut from $1,000 to $100.

💡 After years hitting the financial jackpot, Crown is making its biggest job cuts to re-shape the business for the future.