Crown share prices will ‘spike’ if they keep their licence for Melbourne casino

Sky News contributor Peter Switzer says Crown’s share price will “spike” if they keep the licence for their Melbourne casino but investors will have to “gamble” the Royal Commission doesn’t do anything to send the prices down.

This comes after the counsel assisting a Royal Commission in Victoria recommended Crown is unsuitable to hold a gaming licence and should be stripped of its rights to run the casino in Melbourne.

“It’s a $10 stock right now. There are question marks about whether Mr (Ray) Finkelstein, the Royal Commissioner, could take away the licence,” Mr Switzer told Sky News.

“The business community doesn’t think he would go that far, 12,500 jobs rest on it, and of course it’s important for Victorian tourism.

“The licence would go to somebody else, and they would also make a bid for the assets like the Crown Casino, the hotel group and whatever, and that’s already on the table for a takeover.

“If they keep their licence the share price will spike and there’ll be a chance to make money but you’ll have to gamble that the Royal Commission doesn’t do anything to really spook it and send the price down to maybe $8 or $9.”