The New South Wales (NSW) gambling regulatory body has officially informed Crown Resorts that it is no longer considered suitable to run a casino in the state, the Australian gambling giant said in an Australian Securities Exchange statement released earlier today. The casino operator further shared it had also been found to have violated a clause of the gaming regulations in the state of NSW.
As revealed earlier today, the Independent Liquor and Gaming Authority (ILGA) has also started a consultation process into whether Crown Resorts is able to iron out the failures and once again become suitable to hold the licence following the condemning report of Commissioner Patricia Bergin that was made public a week ago.
The Australian gambling giant issued a statement to the ASX, saying that it had received a letter from the NSW gambling watchdog. As Crown Resorts said, the ILGA’s assessment has confirmed that the company is no longer considered suitable to hold a casino operating licence under the Casino Control Act because it had violated the obligations it had under the VIP Gaming Management Agreement.
Since the former NSW Supreme Court judge Patricia Bergin SC released her report, Crown Resorts has faced even stronger criticism mixed with uncertainty about her operations not only in New South Wales but in the states of Victoria and Western Australia as well. Still, the gambling company will be provided with the chance to address the breaches in order to prove it is worthy of keeping its casino licence and open its Barangaroo casino in the future.
Crown Resorts Faces Pressure and Uncertainty Following Commission Bergin’s Report
The report of Commissioner Bergin found that the Australian gambling operator had facilitated money laundering activities through its bank accounts, had worked in collaboration with junket operators associated with criminal organisations and had even disregarded the welfare of its staff members in China.
The pressure on the company’s executives also increased following Bergin’s report, with three board members – Michael Johnston, Guy Jallan and Andrew Demetriou – stepping down and CEO Ken Barton announcing his resignation yesterday, as already reported by Casino Guardian. Reportedly, the gambling regulatory body of New South Wales continues to pressure the company’s general counsel Mary Manos and director Harold Mitchell to also file their resignations, but today’s statement issues by Crown Resorts to the ASX did not mention them.
As Casino Guardian reported, Chair Helen Coonan is set to assume the role of executive chair following the exit of the Australian gambling giant’s CEO Ken Barton until the company finds a suitable person to occupy the position. Until that happens, Ms Coonan has promised to help with the company’s overhaul in order to make sure it is in line with the regulatory requirements. She further noted that the company would go through branch and root changes but has not provided any more details about these changes.
- Author
Olivia Cole
