Billionaire James Packer makes shock gambling confession three years after selling out of Crown Resorts

Three years after selling out of his Crown Resorts casino empire, James Packer has a confession: He’s quietly back on the punt.

Mr Packer swore off the gambling industry after cashing in his Crown chips in a $3.3 billion deal with US private equity firm Blackstone, which closed the most tumultuous chapter in his business career.

However, in a surprise revelation, he confirmed his reshaped investment flagship Consolidated Press Holdings had placed bets on at least three major international gaming stocks — Wynn Resorts, Flutter Entertainment and Light & Wonder.

“I am passively investing in a few gaming shares so yes, I look at that differently now,” Mr Packer said. “And I’m below the levels that would require probity.”

Mr Packer said the gaming industry had undergone a structural shift since he sold out of Crown in 2022, with online gambling platforms like Perth entrepreneur Laurence Escalante’s Virtual Gaming Worlds emerging as major competitors to “bricks and mortar” casinos.

“In terms of gaming, it is clear that online has massively changed the game . . . and is definitely taking a significant share of the gaming dollar,” he said.

“Australia has produced some great entrepreneurs in the online gaming space — such as Laurence.

“The most valuable gaming company in the world is Flutter, which is an online conglomerate of gaming businesses.”

However, he said he didn’t believe it was time to declare physical casinos a sunset industry.

“On physical gaming, it depends on the regulations and how much competition there is,” he said.

“I own shares in (US-based casino group) Wynn Resorts — mainly because I believe their new development in the UAE will be very successful . And Las Vegas Sands’ casino in Singapore is a cash machine.

“I am an investor in Flutter and also in (US gaming group) Light & Wonder, as-well as Wynn.”

As painful as they were, Mr Packer suggested his Crown lessons helped shape his new operating model for CPH, which is debt free for the first time since he inherited what was a media-focused family empire from his late father Kerry Packer in 2005.

In regard to President Trump — love him or hate him — he is living the most extraordinary life.

“The two examples of defining moments of business for me were (failed telecommunications group) One.Tel, and when Crown got in trouble both in China and in Australia,” he said.

“My personal takeaway from those situations is to be more cynical about people, and to have an aversion to debt.”

Two CPH newcomers Mr Packer has placed his full trust in to oversee CPH’s transition — from a hands-on operator of media and gaming businesses to a pure investor — are Sydney accountant Lawrence Myer and billionaire Canadian-born tech entrepreneur Daniel Nadler.

Mr Packer appointed Mr Myer as chief executive of CPH in late 2023 as part of a move to simplify its corporate structure post the $3.3b Crown sale, in turn giving the billionaire more freedom to pursue a lifestyle “off the tools” and away from public glare.

“I am very, very happy with the way Lawrence is performing as the CPH chief executive,” Mr Packer said.

Mr Packer met 42-year-old Harvard PhD graduate Mr Nadler through a mutual friend, acclaimed Hollywood movie director Bennett Miller.

Dubbed a “medical maverick” by Forbes magazine in a recent cover story, Mr Nadler has emerged as a key investment adviser to Mr Packer, helping CPH generate record returns.

As a result, his personal wealth has increased to an estimated $5.1b — and counting.

In 2022, Mr Packer emerged as the first external investor in Mr Nadler’s AI-driven healthcare start-up OpenEvidence, which backers believe will be for healthcare what Google was for the internet.

Since then, OpenEvidence has rocketed in value from $US400 million ($610m) to $US3.5b which, besides making CPH a fortune, has fast-tracked 60 per cent shareholder Mr Nadler into the global big-tech billionaire club.

On the back of OpenEvidence’s runaway success, Mr Packer hired Mr Nadler to run a private fund for him, dubbed CPH 2030, which invests in companies he believes will be most positively impacted by AI through to the end of the decade.

In the 2024 financial year, the value of the fund’s investments doubled to $2b.

“I am not an expert on AI but I have a friend who is — Daniel Nadler,” Mr Packer said.

“Daniel is a polymath. He has helped me with my investment decisions and I am very grateful for his advice.

“His business OpenEvidence, which I was the first outside investor in, is like a ChatGPT for doctors and prescribing nurses.”

Mr Packer’s biggest win in the AI space has been chip-making juggernaut Nvidia, which this month became the first company in history to reach a $US4 trillion market valuation.

Indeed, just as the spot iron ore price is to the West Australia Government’s finances, the best daily barometer of the health of the Packer empire is now AI pin-up stock Nvidia, the value of which has risen four-fold in just two years under a rock star chief executive Mr Packer rates as probably the best in world, Jensen Huang.

CPH’s other big tech exposures include Taiwan Semiconductor Manufacturer Co (TSMC) and Mark Zuckerberg’s Meta Platforms.

While he revealed he had recently taken some of his big tech winnings off the table, Mr Packer is convinced the AI boom still has a long way to run.

“I don’t believe we have reached peak AI,” he said. “People like Bill Gates are saying that AI is the biggest thing to happen in his life regarding technology.”

And not surprisingly, Mr Packer has no plans to alter his investment strategy while CPH is in career-best form.

“I do see myself remaining a passive investor — but an active passive investor,” he said.

One company Mr Packer hasn’t added to his portfolio is electric vehicle manufacturer Tesla, even after dining with founder Elon Musk at US President Donald Trump’s Mar-a-Lago resort in Southern California in January ahead of Trump’s presidential inauguration.

“I was lucky enough to sit on a table recently with President Trump and Elon Musk,” said Mr Packer, who was seated next to the Mr Trump.

“I have met the President on several occasions, but that was the first and only time I’ve met Elon.

“Elon didn’t try and get me to buy Tesla shares. I don’t know enough about the company — but the blue sky in the share price is too much for me.”

Mr Packer said he was surprised to learn of the spectacular falling out between Mr Trump and Mr Musk since the Mar-a-Lago dinner.

“At the dinner I was present at, their relationship seemed perfect,” he said. “So it did come as somewhat of a surprise to me that the falling out that seems to have occurred, did occur.”

Ironically, some six months after Mr Packer’s private audience with Trump, Australian Prime Minister Anthony Albanese is still waiting for his turn to meet the US President.

“In regard to President Trump — love him or hate him — he is living the most extraordinary life,” Mr Packer said. “His energy and determination, for a man of his age, is simply unbelievable.

“He has been very kind to me on the several occasions I’ve met him. He knew and respected my father and no doubt that’s been a factor in his kindness to me.”

Mr Packer also has an association with Mr Trump through RatPac Entertainment, the Hollywood movie company he re-acquired a 50 per cent interest in with partner Brett Rattner after selling out at a big loss in 2017.

RatPac is filming a $US40m documentary on US First Lady Melania Trump, which will be distributed by Amazon.