Crown Perth is expected to learn the fate of its casino licence in a month’s time. The Western Australian Royal Commission is set to present the report of its findings to Premier Mark McGowan and Governor Kim Beazley at the beginning of March, making a recommendation on whether Crown Perth is fit to keep its operating permit for the iconic casino.
Although it would be up to Premier McGowan and the state government to make the final decision on the fate of the only casino licence holder in Western Australia, the final report of the Royal Commission is equally important because it is supposed to include advice on the alleged shortcomings of the Perth casino of Crown Resorts, its management and the state’s gambling regulatory body.
As Casino Guardian previously reported, the WA Royal Commission is the third, and last, of the inquiries faced by the Australian gambling giant in the last couple of years.
So far, the other two Royal Commissions – the one in New South Wales (NSW) and the one in Victoria – found Crown Resorts unsuitable to hold a casino licence in each of the two states. As a result, the Australian casino company saw its Sydney casino licence suspended, while Crown Melbourne was given a second chance to make things right under the supervision of a special administrator so that it proves it is fit to remain Crown Perth’s operator.
Crown Resorts Accepts Historic Failures and Opens a New Page
The WA Royal Commission saw the last two hearings as part of its ongoing investigation before making its final recommendations for the fate of Crown Perth. The majority shareholder of the Australian gambling giant – James Packer – also gave evidence during the probe.
Kanaga Dharmananda, the legal representative of Crown Resorts, has asked commissioners to take in mind the many changes that had been made by the gambling company on its way to fixing its problems and not make a judgement based only on its past behaviour. Mr Dharmananda also outline some of the activities involved in the remediation program of Crown Resorts, including a responsible gambling program and anti-financial crime scheme. The lawyer of the Australian gambling giant further confirmed that Lonnie Bossie and David Brown, who took the positions of CEO and cage boss at Crown Perth, had left the company since the beginning of the inquiry.
Crown Resorts claims that it has accepted its historic failures and opened a new page by adopting a comprehensive program of reform, demonstrating insight and making some appropriate concessions.
On the other hand, the legal representative acting for Consolidated Press Holdings (CPH), the private investment company of James Packer that holds the largest share in the company, said that the influence was once held by CPH, and Mr Packer, respectively, is now gone. The lawyer also asked the WA Royal Commission to be careful when making its recommendations and not rely too much on the findings of other investigations into the gambling operator.
The inquiries of the Royal Commissions both in New South Wales and Victoria were damning on Mr Packer’s influence on the company. The Victorian commissioners even recommended that Consolidated Press Holdings should bring down its shareholding in the company to less than 4% by 2024.
Future of Crown Resorts Remains Uncertain Despite Path of Improvement
Although the Australian gambling giant has accepted its previous shortcomings and claims to be on the path of improvement, its future remains uncertain.
Patricia Cahill, the senior counsel assisting the WA Royal Commission said that the uncertainties regarding Crown Resorts’ future should be taken into account when the assessment of its suitability to hold a casino operating permit is made. She noted that such matters could include the fact there is no present or pending appointment of a chief executive officer and chief operating officer of Crown Perth, the likelihood of the effects of the implementation of Victoria Royal Commission’s recommendations, and the recommendations regarding specifically the company’s Melbourne casino.
Apart from everything said above, the WA Royal Commission is also investigating how gambling is regulated in the state, which means it focuses on the effectiveness of the local gambling regulatory body – the Gambling and Wagering Commission (GWC) – as well as on the Department of Local Government, Sport and Cultural Industries. The competent regulatory authorities have been blamed for being too liberal in the control and monitoring of the Perth casino of Crown Resorts, ignoring some obvious conflicts of interest that were also investigated by the Royal Commission.
- Author
Olivia Cole
