Crown Resorts, which is currently under scrutiny by the New South Wales government due to allegations of money laundering at its casinos, now is in the sights of Melbourne authorities as well.
A “suitability” hearing in New South Wales has kept Crown’s multibillion-dollar casino in Sydney’s Barangaroo district from opening (though its hotel, retail and F&B operations were permitted to open). Now Crown Resorts faces an “urgent” review of its Melbourne operations to determine if the company should retain its casino license there.
According to the Australian Financial Review, the Victorian Commission for Gambling and Liquor Regulation (VCGLR) reviews Crown’s license there at least every five years, but has been asked by the state government to start the next review now. The most recent review took place in 2018.
The Victorian government was alarmed by the situation in New South Wales, where officials have heard allegations of money laundering at Crown casinos as well as corporate governance failures and links to organized crime. A dedicated commissioner will oversee the Victorian inquiry and report next year on whether James Packer’s company should retain the state’s only casino license.
“We’re making sure Crown Melbourne conducts its business in a transparent and appropriate manner,” Victoria Minister for Consumer Affairs, Gaming and Liquor Regulation Melissa Horne said in a statement.
“This review is needed given the evidence we’ve seen come out of the NSW inquiry,” she said. “While we await the findings of that investigation, it’s appropriate to bring forward the next review to ensure Crown Melbourne is suitable to hold a license in Victoria.”
Victorian Premier Daniel Andrews told reporters, “It would be my hope that some of the issues that have been raised can be accounted for and we can have confidence that … Crown Casino is run to the highest standards. We’re all entitled to that reassurance. But that’s not a matter for me, that’s a matter for the independent regulator.”
Victorian Greens leader Samantha Ratnam demanded that the Melbourne casino be shuttered during the probe. “Given the damning evidence coming out of the inquiry, Crown shouldn’t be allowed to retain its Victorian license while this investigation takes place,” she said in a statement on December 17.
Andrews disagreed, saying he didn’t want to prejudge Crown prior to the “frank and fearless process” now under way.
Back in Sydney, Crown’s VIP casino will remain closed until the New South Wales investigation concludes in February.
