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NSW gaming authority says Crown Sydney could open by year end, ‘surprised, pleased’ by reform so far

Gerard Cockburn and Rebecca Le MayNCA NewsWire
Not Supplied
Camera IconNot Supplied Credit: News Corp Australia

Crown Resorts may gain a much-needed gambling licence for its new $2.2bn Sydney venue by the end of this year, the NSW Independent Liquor and Gaming Authority says, after making substantial changes including agreeing to make all of its casinos cashless.

On Thursday morning, ILGA chair Philip Crawford provided an interim update on whether the embattled gaming giant, majority held by reclusive billionaire James Packer, would get its gambling licence for Barangaroo.

A damning probe last year by former Supreme Court judge Patricia Bergin uncovered evidence money laundering had occurred within the company’s Melbourne and Perth casinos, causing the company to be deemed unfit to hold a licence for the new venue.

ILGA Response to Crown Report
Camera IconChair of NSW Independent Liquor and Gaming Authority, Philip Crawford, says he’s surprised and pleased with Crown’s progress so far. Nikki Short Credit: News Corp Australia

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Mr Crawford said he expected the new venue, where non-gaming operations have been allowed for months, would be able to open its gaming floor by the end of this year.

Some prior management - ousted as a result of the scandal - were prepared to legally take on the regulator, which Mr Crawford said would have been foolish and hindered the company’s chance of opening the casino.

“It could have gone either way,” he said.

ILGA confirmed Crown had reached agreement on a number of matters, including paying a proportion of the costs of the Bergin inquiry and no longer operating any international high-roller junket operations, which were at the centre of the scandal.

All gaming at its venues will need to be cashless, with card technology linked to identity and recognised financial institutions.

Crown will also phase out all indoor smoking across all of its venues.

Rival casino operator Star Entertainment Group, which this week proposed to merge with Crown, has also agreed to cease hosting junkets.

SUNRISE WEATHER
Camera IconNon-gaming operations began at Barangaroo in December and luxury apartments are being sold. NCA NewsWire/Gaye Gerard Credit: News Corp Australia

Mr Crawford said he was “surprised and pleased” with Crown’s conduct of late and agreements to change.

He also noted all the senior executives deemed unsuitable in the Bergin report had left the company and were being replaced by people with relevant expertise and experience.

Mr Crawford said there were still issues being worked on between Crown and the regulator.

“I’m not telling you today they are suitable,” he said.

“There is more to be done.”

Crown’s Riverbank and Southbank bank accounts - which the inquiry heard appeared to have had money laundered through them - have been closed.

Mr Crawford said ILGA needed to check that organised crime had not infiltrated other Crown bank accounts.

He said an independent monitor was being appointed to ensure the company complied with regulations and would report back to ILGA on Crown’s structural changes, with a particular focus on corporate governance, anti-money laundering measures and culture.

“The authority will await a report from the independent monitor and the result of the financial accounts audit before making a final decision on suitability.”

James Packer’s CPH has a stake in Crown of 37 per cent but he has signalled he is willing to sell some or all of his stake.
Camera IconJames Packer’s CPH has a stake in Crown of 37 per cent but he has signalled he is willing to sell some or all of his stake. Credit: Supplied

Mr Crawford also pointed out the regulator last month made Mr Packer, who is the company’s biggest shareholder through his private investment vehicle Consolidated Press Holdings, agree to various undertakings aimed at blocking his influence over Crown.

They include CPH not entering into any information sharing arrangements with Crown, not initiating any discussions with the gaming giant – other than through public forums – about its businesses or operations, and not seeking to have a CPH executive or nominee appointed to Crown’s board.

Mr Packer’s CPH lieutenants exited the board along with other key executives, including chief executive Ken Barton, in the wake of the controversy.

Commissioner Bergin found the reclusive billionaire had had a “disastrous” influence over Crown, driving the push to secure more junkets, with a dire outcome of that aggressive marketing being the arrest of staff in China in 2016.

Meanwhile, Crown has found itself at the centre of a bidding war - considered opportunistic given the company’s shares have been hammered due to the financial impact of pandemic-related closures and the fallout from the Bergin inquiry.

A full takeover offer is on the table from US private equity giant Blackstone, which already has a 9.99 per cent stake in the company, while Star seeks a tie-up.

Royal commissions sparked by the NSW probe are under way in Perth and Melbourne.

Originally published as NSW gaming authority says Crown Sydney could open by year end, ‘surprised, pleased’ by reform so far

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