Nearly 15 months after Crown Resorts was deemed “unsuitable” to hold its Sydney casino license, New South Wales (NSW) Independent Liquor and Gaming Authority (ILGA) has given the green light to the operator’s new parent company, U.S.-based Blackstone Group, to operate its Crown Sydney casino.
Although the exact terms of the new license have yet to be officially approved by Australia’s federal government, it is suspected to be for an initial period of two years with the option to become fully licensed after that period, according to local media.
ILGA Chairperson Philip Crawford said in a statement that Blackstone “has been required to demonstrate the highest standards of probity as well as a commitment to deliver the full suite of operational changes recommended by the Bergin Inquiry.”
Crawford also described the ruling as “a key step” in making sure that the embattled Sydney casino is “able to fully meet its undertakings for major operational, governance and structural reforms.”
According to the ILGA, the authority has already begun working with Crown on a plan to open conditionally, so that the Authority can “monitor the implementation by Crown of its obligations under revised internal control measures.”
Over the course of its previous inquiry that originally stripped the operator of its license, Crown made several promises to regulators that are expected to be implemented now that approval has been granted. Those promises include paying part of the inquiry expenses, implementing a new casino supervision levy, banning smoking indoors and adopting cashless payment models.
Wasting no time, Crown has already begun to advertise in the area for numerous positions, including “experienced table games dealers” and even a new general manager, according to online job postings. New CEO Steve McCann told local outlet WA Today that the company expects to fill about 500 vacancies in total for the shuttered Sydney casino.
One Step Closer
In addition to the ILGA’s ruling, Blackstone has also received approval from the Victorian Gambling and Casino Control Commission (VGCCC) to operate Crown’s casino in Melbourne.
That means the investment firm only needs approval from Western Australian regulators to operate Crown’s casino in Perth before the takeover can be fully completed.
In his statement, Crawford did mention that the ILGA’s ruling in NSW was itself contingent on Crown’s ability to receive other states’ approvals as well as federal backing for Blackstone’s $6.3 billion acquisition of the company.
With approval from two states already secured, however, it appears that the full go-ahead is all but certain to be granted.
Shareholders from both Blackstone and Crown already voted overwhelmingly in favor of the merger earlier this year. Billionaire James Packer, who currently owns a 37 percent stake in Crown, has agreed to sell his shares and step away from the company as part of the merger after being entrenched in money laundering accusations.
When asked about the recent announcements, Blackstone declined comment while Crown only confirmed that it had received two approvals and is awaiting a third.
Chilly Reception
The news has already begun to ruffle feathers around the gaming industry, calling some to question whether or not the recent inquiries had any real effect after all.
Gaming consultant Ben Lee told ABC News Australia that if Crown is fully reinstated, it would make gaming licensing look like a “total farce.”
Lee also questioned Crown’s ability to sustain operations moving forward, given the fact that Chinese traffic, especially from VIP patrons, will likely never return to previous levels after Crown and fellow operator Star Entertainment were both found guilty of a money laundering scheme involving China UnionPay bank cards that resulted in massive fines.
“The fact that the Chinese market has totally disappeared, and is never likely to return again means that the business justification for having a second casino, particularly one as high end as Barangaroo is no longer there,” said Lee.
