The first one of three inquiries into Crown Resorts and the operations of its casino business is set to start on January 21st in Sydney.
No witnesses are expected to be called at that date, as they are set to join the New South Wales inquiry at a later stage when the inquiry action will start in full swing.
Apart from the inquiry that was initiated by the NSW Independent Liquor and Gaming Authority, there are two others – the public hearings that are set to be held at a federal level by the Australian Commission of Law Enforcement Integrity, and one that has been set up by the Victorian casino authorities. Both of them seem to be put on hold for now, because the competent authorities still expect the results of the probes into Crown Resorts.
Apart from these difficulties, Crown Resorts has also been struggling with a class action filed by some shareholders, with witness statements from employees, who were among the ones convicted in China for illegal participation in gambling promotion, on the way.
Several Allegations Would Be Investigated During Crown’s NSW Probe
The New South Wales inquiry is expected to primarily target the proposed $1.75-billion sale of the 20% Crown Resorts stake to Melco Resorts, a gambling giant owned by Lawrence Ho. The sale has unleashed some issues regarding the possible violation of a certain clause in the Australian gambling operator’s license for the company’s Barangaroo casino.
As previously explained by Casino Guardian, the aforementioned clause prevents Crown Casino and its Barangaroo casino from establishing any connections with Lawrence Ho’s father, Mr Stanley Ho, as well as with a list of individuals and companies associated with him. This clause has been implemented into the casino operating license when it was granted in 2014.
The upcoming inquiry is set to investigate the structures of the casino giants held by Lawrence Ho and Stanley Ho in Macau and their financing in order to find out whether there had been any violation of the special clause.
Previously, it has become clear that Lawrence Ho was a director of one of the companies associated with his father and that fuelled a lot of criticism. At this time, the first 10% of the Crown Resorts’ stake were already purchased by Mr Ho but he announced a decision to put off the purchase of the second 10% purchase.
Apart from the above-mentioned clause, there are also some broad requirements in the NSW casino legislation under which companies that hold casino licenses need to have a good reputation and not be associated with individuals or companies who are not of good repute. The upcoming NSW probe is to also consider several issues, such as allegations of money laundering practices in the VIP casino rooms in Crown Casino Melbourne, dealing with junket operators associated with organised crime, human traffic, etc.
- Author
Olivia Cole
