As of March 1, yet another Crown Resorts director was out the door. John Poynton resigned from two roles, as company director and chairman and director of Crown’s Burswood casino in Perth, Western Australia. He had held the latter position since 2004.
A longtime intimate of Crown honcho James Packer and Packer’s private investment company Consolidated Press Holdings (CPH), Poynton had been under pressure to quit since the release of the Bergin Report, which ruled that Crown is unsuitable to hold a gaming license in New South Wales (NSW). He was preceded out the door by two other Crown board members, Guy Jalland and Michael Johnston, as well as CEO Ken Barton and other executives.
In a statement, Crown Chairwoman Helen Coonan said Poynton “agreed to resign in the best interests of Crown and our shareholders,” even though the Bergin Report did not question “his suitability, integrity or performance. On behalf of the board, I thank John for his contribution to Crown over many years.”
According to the Guardian newspaper, in the report made public February 9, Crown was found to have allowed money laundering at its casino in Perth. The report further alleged ties by Crown’s junket partners to Asian crime syndicates, and pointed to the 2016 arrests of 19 Crown Resorts staffers who illegally promoted Crown casinos in mainland China. Those employees were arrested and held in in a Shanghai detention center for months before being deported.
Crown opened its lavish new US$2.2 billion resort in Sydney’s Barangaroo section in December, but is prohibited from opening the VIP casino that is its centerpiece. The Sydney Crown Towers hotel, bars and two restaurants opened January 8 under an interim license that must be renewed in May. If Crown overhauls its culture and displays a commitment to transparency and compliance, it stands a chance of regaining its gaming license.
Despite all the mayhem, with much of the blame laid on Packer, the billionaire may be able to retain his full 37 percent share in the gaming giant, though it’s been suggested he reduce his ownership stake to as low as 10 percent.
“Being able to retain a 37 percent stake would represent a major reprieve for Packer,” wrote Sydney Morning Herald columnist Elizabeth Knight. “For any would-be Crown predators, the company is kryptonite, until the (NSW Independent Liquor and Gaming Authority) deems it suitable to hold a license.”
Meanwhile, the Victorian Royal Commission preparing to look at Crown operations in that state will be headed by former Federal Court judge Raymond Finkelstein QC.
