The gambling regulatory body in New South Wales (NSW) has made the billionaire investor of Crown Resorts agree to a number of measures aimed at eliminating his influence over the gambling operator at a time when he is still the company’s biggest shareholder.
Commissioner Bergin’s probe into the Australian gambling giant came to the conclusion that Crown Resorts was unsuitable to keep its Barangaroo casino licence, partnered with Asian junket operators linked to criminal organisations and violated anti-money laundering rules at its Melbourne and Perth casinos. At the time when she announced the findings in her report, Ms Bergin also said that James Packer’s long-time influence over Crown Resorts had had a disastrous impact on the company despite his decision to quit his position in the company’s board in 2018.
According to some findings during the investigation, Mr Packer had been the driving force behind the gambling operator’s push to collaborate with junkets and bring as many Asian high-roller customers as possible to its Australian casinos. One of the most negative consequences of that partnership became the arrest of some Crown employees in China in 2016.
Although Mr Packer has previously shared his intentions to step back from his position and become a passive investor, with him also being open to receiving acquisition offers for his almost-37% stake in the company, the local gambling regulator wanted to make sure he will be kept as far as possible from Crown Resorts’ operations.
Crown Resorts Facing Regulatory Scrutiny over Poor Governance, Junket Partnership and Money Laundering Allegations
The NSW Independent Liquor & Gaming Authority (ILGA) has wanted to make sure that James Packer’s influence over Crown Resorts would be formally blocked. As a result, earlier today the regulator announced that Mr Packer had agreed to a number of measures that were set to be included in an official and enforceable legal document.
Some of the undertakings the billionaire investor of Crown Resorts said yes to included his investment company Consolidated Press Holdings (CPH) not initiating any discussions with the Australian gambling operator apart from public forums, especially ones that involved its operations or business.
Following the revelations made by the damning Commissioner Bergin’s report, the CPH lieutenants of Mr Packer and several other key executives left Crown Resorts’ board.
As already reported by Casino Guardian, the regulatory body eventually found that the Australian gambling giant was unfit to hold a gaming licence for its new AU$2.2-billion casino in Barangaroo. Furthermore, the company’s operating licences in Melbourne and Perth are also at risk, with Crown Resorts currently being subject to separate Royal Commissions in the states of Victoria and Western Australia.
Despite the misfortunate events it has been recently dealing with, Crown Resorts has been willing to make things right in order to make itself worthy of keeping its casino gambling permits in the country. The company has also received a takeover offer from the US private equity firm Blackstone, with the latter having recently altered the proposal, making the offer conditional on the operator’s licences in Victoria and Western Australia.
- Author
Olivia Cole
