Australian gambling giant Crown Resorts is set to learn the fate of its Barangaroo casino project in Sydney within days as the former judge who has been investigating into the company’s operations is preparing to unveil the probe’s findings and to make recommendations about the operator’s suitability to run the new gambling business.
The former NSW Supreme Court judge Patricia Bergin SC was heading the inquiry following allegations that Crown Resorts deliberately turned a blind eye to money laundering schemes happening in its casino venues and cooperated with groups related to foreign criminal organisations. Because of the ongoing probe, the state gambling regulatory body decided to withhold the casino operating licence after the inquiry’s revelations. That is why the Australian gambling giant was forced to open its new Barangaroo tower in Sydney in December 2020 without the casino operations that have been intended as the entity’s centrepiece.
Under the terms of reference that bind her, Ms Bergin is required to submit her report by February 1st. She was appointed by the Independent Liquor and Gaming Authority (ILGA) to run the investigation following some scandalous revelations in local media that Crown Resorts had been working with Chinese junket operators with links to criminal organisations.
Media Revelations Put Crown Resorts Under Regulatory Fire
The other reason why the local regulatory body started the investigation was the decision of James Packer to sell one-fifth of his assets in Crown Resorts to Melco Resorts. However, Melco is run by Lawrence Ho, the son of the controversial gambling magnate Stanley Ho. This connection raised some questions on whether Crown could have accessed organisations known for their links with criminal groups.
At a later stage, the inquiry also raised questions regarding the independence of the company’s board, as well as about the effectiveness of the company’s measures preventing money laundering schemes, its risk assessment, etc.
Now, Ms Bergin will have to unveil her report on whether the subsidiary of the Australian gambling group was fit to hold an operating license for its Barangaroo casino. The company received the licence in 2014 after a tough battle with local politicians and representatives of the wider public. The investigators will also have to decide whether Crown Resorts is able to be a close associate of the casino operating licence holder.
In case Ms Bergin finds the Australian gambling operator unsuitable for holding the casino licence, she will have to make recommendations what would make Crown Resorts fit to hold the licence in question. She will also have to decide whether Mr Packer’s assets sale to Melco Resorts was a violation of the licence conditions under which the company was allowed to run its Barangaroo project or to any other regulatory agreement.
- Author
Daniel Williams
