The gambling regulatory body of the state of New South Wales (NSW) has no intention of rushing any decision-making on the potential acquisition of Crown Resorts from Blackstone Group. It seems that the watchdog’s future actions may be very much affected by the report of Commissioner Bergin which found that local authorities need to consider a proper response to the findings about the Australian casino giant’s links to junket operators, money laundering and poor corporate governance.
As Casino Guardian already reported, the US private equity firm Blackstone Group has approached the Australian gambling company with an AU$8-billion takeover offer. However, even if the shareholders of the two operators give their approval to the transaction, the acquisition deal’s completion would be dependent on so-called “implementation agreements” with the gambling regulators in the three states where Crown Resorts runs casino venues – New South Wales, Victoria and Western Australia.
The gambling watchdogs in the three aforementioned Australian states would have to confirm that Blackstone Group would be a suitable owner to the assets of Crown Resorts and to operate the casino licences held by Crown in Sydney, Melbourne and Perth. Other gaming-related approvals would also be required, as explained by the manager of the US private equity firm.
NSW Gambling Watchdog Wants to Take Its Time to Consider Commissioner Bergin’s Report
Phil Crawford, the chairman of the NSW Independent Liquor ad Gaming Authority (ILGA) shared that the state’s gambling regulatory body was aware of the acquisition bid that has been recently made by Blackstone Group. However, the Authority would not rush things and would take as much time it needs to carefully consider the findings of Commissioner Bergin’s report. As Casino Guardian reported, the report found Crown Resorts unsuitable to hold its operating licence for the new Barangaroo casino in Sydney.
Mr Crawford explained that the NSW gambling watchdog is still considering its response to the report’s findings and would make sure it takes the time such a response needs in terms of detail and complexity. Until this happens, the Authority would not be in a position to make commentary on any potential outcomes of the takeover offer received by Crown Resorts.
As already revealed, the acquisition bid of Blackstone is subject to due diligence would have to receive the approval of the investment committee of the US private equity firm, which already holds an almost 10% stake in the Australian casino giant.
The potential deal could help James Packer, who currently holds the biggest stake in Crown Resorts (37%), divest his holding in the company that has been suffering harsh criticism following the scanting report of NSW Commissioner Patricia Bergin. Considering the mounting regulatory uncertainty that is being faced by the Australian gambling giant, as well as Mr Packer’s personal circumstances, the company’s billionaire investor could finally exit the business, considering the fact he had previously left his position in Crown’s board.
- Author
Daniel Williams
