Aussie billionaire James Packer quits board amid drop in gambling revenues in Macau

Australian billionaire James Packer has quit the board of casino giant Crown Resorts Ltd as Chairman. The Crown Resorts Ltd has been struggling with a drop in revenues. Packer has decided to focus on development projects in Australia and the US. Packer will continue as co-Chairman of the company.

James Packer owns 53 percent stake in the A$9billion ($6.5billion) Crown Resorts, which is losing revenues in Macau, the gambling hub in Asia. However, Packer has not revealed the reason for leaving the board. He said that he would devote his time on development projects in Sydney, Melbourne, and Las Vegas.

According to a report by Reuters, the gambling revenues have been easing down for the past 18 months in Macau. The Chinese government's stringent measures on corruption have resulted in a steep drop in gambling activity in Macau. Packer said that "it represent the vast majority of my net worth as it weathers a slump in Macau." The latest decision of Packer will reduce his influence on Crown Resorts.

Four months later quitting the board as Chairman in August, Parker has decided to quit the board. His decision surprised the investors and the market. Crown reported a one-fifth drop in annual net profit owing steep fall in gambling revenues in Macau.

A one-third stake in Hong Kong-based Melco Crown Entertainment Ltd held by Crown, as reported by the guardian. In 2015, it opened a 39,000-square foot casino in Macau. Crown shares rose five percent in the flat trading.

Packer says he's proud of Crown's achievement and there's more to deliver for shareholders. In an anticipation that the latest decision of Packer could result in a privatization deal, Crown shares rose over three percent to A$12.

Packer will not be participating in day-to-day operations at Crown, but will remain as co-Chairman of Melco Crown Entertainment and Alon, according to a report by ABC News. "Now is the right time for me to focus on my endeavors on my new role with Crown, as I outline to shareholders when I stepped aside as Chairman in August," Packer said in a statement.

Packer's private investment vehicle Consolidated Press Holdings Ltd has recently closed a major transaction in the family business. "It also assisted the timing of my decision," said Parker.

Packer, after his father's death in 2005, took over the reins of Crown, then it was a media conglomerate Publishing and Broadcasting Ltd. Packer has transformed the company into the one of the global casino developers and operators.