Crown Resorts has suspended a significant number of high-roller players in Australia as a result of a due diligence review of the existing customer base in its domestic market.
The Australian gambling giant officially revealed that it banned over 250 out of approximately 1,800 local high-roller players from its casinos, as these customers did not manage to identify the source of their money, or had raised other integrity concerns that could make it harder for the gambling operator to clean its name and keep its casino permits in Sydney, Melbourne and Perth.
As revealed by Allan McGregor, the chief financial officer of Crown Resorts, the ongoing due diligence review that is currently being held is much more important and comprehensive than before, because the troubled casino giant has to make sure it strictly complies with regulations.
The decision to ban a large number of its high-roller customers comes as Crown Resorts is desperately trying to keep its casino operating licences in Sydney, Melbourne and Perth, following recent findings of criminal infiltration, money laundering and poor governance across the company’s gambling venues in Australia.
As reported by Casino Guardian, after the 2020 inquiry of the New South Wales (NSW) Commissioner found evidence of irresponsible gambling practices, money laundering and links to criminal organisations in China, Crown Resorts was found unfit to keep its casino licence for its new AU$2.2-billion Barangaroo casino resort in Sydney.
The Australian Gambling Giant Considering Various Outcomes for Its Casino Business
After the Australian casino company saw its Barangaroo licence suspended, a Royal Commission in its operations was established in the state of Victoria. The inquiry found some major failures in the gambling operator’s responsible gambling practices along with some evidence of multiple suspicious activities, including money laundering, unpaid taxes, etc. All of these findings eventually resulted in the revocation of the company’s licence in the state.
Apart from that, another Royal Commission was established into the Crown Resorts’ operations in Western Australia, with a bunch of possible scenarios considered by the company, including the suspension or licence cancellation, as well as future acquisition offers for its ailing operations.
As mentioned above, the Australian gambling giant made the decision to ban a significant number of its VIP players as part of its efforts to comply with some requirements that could help it keep its licences that have been put under question. A due diligence review of approximately 1,800 local high-roller customers resulted in more than 250 of them being banned from the gambling premises of Crown Resorts.
Although the Australian gambling giant has been hoping for the best, it has been preparing for a range of possible outcomes associated with the licences. As the incoming CEO Steven McCann explained, the casino company would consider all options to maximise its shareholder value, especially in the context of the ongoing regulatory reviews.
- Author
Olivia Cole
