The financial adviser of James Packer failed to check whether the Hong Kong gambling mogul Stanley Ho had an interest in Melco Resorts at the time when a considerable shareholding in the Australian casino company was sold to the Macau-based gambling operator.
The involvement that Mr Ho had with Melco Resorts had to be checked before the 20% stake sale agreed Melco International that is the owner of a one-third in the casino giant. Furthermore, the Chinese billionaire’s involvement was found critical to the deal, as the restricted gaming licence of Crown Resorts for its Barangaroo facility was not allowed to have any association with Mr Ho.
Now, the NSW Independent Liquor and Gaming Authority is examining the suitability of Crown Resorts and its associates to hold the operating licence for the casino giant’s near-complete Sydney’s waterfront gambling facility. The probe into the Australian gambling company has turned its attention to Michael Johnston, the finance director at James Packer’s private investment in the operator.
Mr Johnston, who is also a director at Crown Resorts, admitted that he had not checked the possible involvement of Mr Ho with Melco International since the Australian casino giant had ended its joint venture in Macau with Melco in 2017. He further shared that he was unaware that the involvement of Stanley Ho with Melco would put the Barangaroo gambling licence of Crown Resorts at stake.
The evidence of Mr Jognson continues, but so far, it became clear that the management of the Australian gambling operator was not informed of Mr Packer’s intentions to dispose of 20% of his holding in the company by selling it to Melco Resorts for AU$1.8 billion.
Ongoing NSW Gambling Regulatory Investigation Puts a Lot at Stake for Crown Resorts
The ongoing investigation held by the NSW Independent Liquor and Gaming Authority into Crown Resorts’ suitability to hold its high-roller casino licence at Barangaroo puts a lot on stake for the Australian gambling company.
Allegations of links to international criminal organisations through the junket partners of Crown, money laundering through special accounts operated by the Australian casino giant, bags of cash being deposited in the operator’s VIP room, have only made things worse for Crown Resorts.
So far, a number of witnesses have acknowledged that the anti-money laundering scheme of Crown failed to do what is supposed to do. The probe has been triggered after videos of cash being handed over to customers of VIP rooms of Crown Melbourne emerged. Also, major banks refused to cooperate to accounts related to the company’s casinos in Melbourne and Perth due to concerns regarding structured cash deposits that had obviously been designed to circumvent reporting requirements.
At the time when the aforementioned allegations were first published by several local media hubs in 2019, Crown Resorts run a full-page ad rejecting the claims describing them as a “deceitful campaign” aimed at tarnishing the company’s reputation. However, the claims have put the casino operating licence of the Australian gambling giant at stake and could cost Crown Resorts a lot.
- Author
Olivia Cole
