The CEO of Australian gambling giant Crown Resorts has resigned, following the unfavourable assessment in Commissioner Bergin’s report alleging the company in facilitating money laundering operations and links to criminal organisations. The report found the casino company unfit to hold its operating licence for its newest Barangaroo casino project in Sydney.
After it was revealed that the CEO’s position was under consideration last week, Ken Barton officially announced his resignation earlier today. He faced growing pressure after the revelations of the inquiry, especially considering that Ms Bergin’s report found him showing a “breathtaking lack of care”.
As Casino Guardian reported, the former NSW supreme court judge Patricia Bergin found that Crown Resorts had “deficient risk management”, “poor corporate culture”, as well as “poor corporate governance”. This was exactly the reason why the Australian casino operator’s boss faced harsh criticism. Now, his departure from the company removes what was considered a major obstacle for the company to the way of regaining its Barangaroo casino licence.
Unfortunately, Mr Barton’s exit also deteriorates the uncertainty regarding Crown Resorts’ future direction.
So far, three major figures in the Australian gambling giant have announced their decision to leave the company over the past week, while a fourth one has cut their ties with the company’s major shareholder James Packer who has also faced strong criticism in the Commissioner’s report.
Three Board Members of Crown Resorts Already Step Down as Result of Report Findings
Chair Helen Coonan is to now lead the Australian gambling operator as executive chair, while the company’s board is looking for someone to replace Mr Barton in the CEO position. Ms Coonan said that she did not take lightly the role of executive chair of Crown Resorts, especially at times when the company needed all the stability it could use. She further noted that the Board is determined to hold on to the momentum, as the gambling operator is taking significant steps aimed at improving its corporate culture, governance and compliance.
Commissioner Bergin’s report that was officially announced a week ago followed a year-long inquiry into the company’s operations that was commissioned by the gambling regulatory body of New South Wales (NSW). The investigation was given a start after the operator faced some accusations of money laundering and links with criminal organisations.
Unfortunately for Crown Resorts, the ports found it unsuitable to hold its gambling licence for its new Sydney waterfront casino and said that Ken Barton was unfit for leading the company.
According to analysts, the only choice for the Australian gambling giant now is to “clean house” and dispose of some key members of its board and management, a keeping them in their places would risk some serious issues occurring with its casinos outside the state of New South Wales.
The probe and subsequent Commissioner’s report have drawn more attention to two other casino properties the company already operates in the country – Victoria-based Crown Melbourne and Western Australia-based Crown Perth. The gambling regulator of the state of Victoria already called for Mr Barton and another director to reconsider their future in Crown Resorts and revealed the authorities were investigating a third director.
- Author
Olivia Cole
