Australia’s Crown Resorts, which was denied a license to open its new VIP casino in Sydney earlier this year, may be on the road to redemption in the eyes of regulators.
According to Asia Gaming Brief, Philip Crawford, chairman of the New South Wales Independent Liquor and Gaming Authority (ILGA), said the reinstatement of the license in the second half of this year is a “realistic prospect” if the company puts its “structures in place.”
Crown’s license was suspended in February following the release of the so-called Bergin Report, which detailed the company’s history of lapses in anti-money-laundering measures, with the result that millions in questionable funds were reportedly funneled through Crown casinos outside New South Wales.
That report led to a massive housecleaning at the executive level. CEO Ken Barton was forced to step down along with five directors and General Counsel Mary Manos. Helen Coonan has assumed the role of executive chairwoman as company looks for a new CEO. The report also led to two more inquiries in the states where Crown does business, Western Australia and Victoria, and put its licenses there in question.
Speaking to the Australian, Crawford said Crown is not in the clear yet. “Let’s be under no illusion, if I’m not satisfied, if the Independent Liquor and Gaming Authority’s not satisfied that they have rehabilitated themselves, they won’t be found suitable,” he said.
He also said much of his optimism stems from Coonan’s leadership.
“She gets it. It’s a very serious matter, so this is really about crisis management,” he said. “From day one, she has been very open and frank about how bad things were and her shock and disappointment at matters uncovered in the inquiry. She has also understood that it needs to happen pretty quickly.”
Crown Resorts said former SkyCity Entertainment CEO Nigel Morrison has received all the necessary regulatory approvals to join the board as a director.
In related news, Crown’s majority shareholder, billionaire James Packer, has indicated he is open to offers for his 37 percent stake in the operator.
Packer’s private company, Consolidated Press Holdings, said it has hired investment bankers Moelis Australia to advise on any potential deal. The company is currently evaluating an AU$8 billion offer from private equity firm Blackstone, which holds a 10 percent interest in Crown, reports Inside Asian Gaming. While analysts consider Blackstone’s offer of AU$11.85 a share too low, Packer’s willingness to divest may encourage other bids.
According to Australian media, other potential bidders are looking at the company; the Sydney Morning Herald noted Moelis advised Wynn Resorts on its failed bid for Crown in 2019. Moelis is familiar with the company and has played a key role in multiple U.S. deals.
As the drama plays out, Crown’s Sydney resort in the Barangaroo district is open, but operating without its casino, which was targeted to Asian VIPs.
