When Australian operator Crown Resorts was deemed unsuitable for casino licensure by Victorian regulators back in October 2021, it was given a two-year grace period to turn things around. Now that its deadline is fast approaching, however, regulators still haven’t ironed out a “plan B” for what will happen if Crown does not come through.
What those around the industry have speculated is that Crown would likely be replaced by an incoming operator with a better track record, as the Victorian government has made it clear that it expects to have a functioning casino in the state, regardless of who’s running it.
Annette Kimmitt, CEO of the Victorian Gambling and Casino Control Commission (VGCCC), the state’s top regulatory authority, recently told Inside Asian Gaming that back in late 2021, “Crown was found not suitable but there was no ‘Plan B’, so we really need to make sure we are putting in place the legislative framework to ensure continuity of service even if Crown is found unsuitable.”
Since the ruling first came down, the property in question, Crown Melbourne, has been under the supervision of a so-called “Special Manager,” Stephen O’Brien, to ensure that remediation efforts continue in an acceptable manner.
O’Brien is expected to submit his final report about Crown’s suitability at the end of the year. Violations of anti-money laundering (AML) and responsible gaming regulations were the top offenses that the company has been tasked with undoing.
Kimmett gave few details as to what would actually happen should Crown fail to pull itself together in time, but the regulator told IAG that it would probably be some form of a “ transition-out plan that we are working on with Crown, to go in and take over the day-to-day operations of the casino to keep more jobs going and keep the casino operating, which will give the government time to run a process around the issue of the new casino license.”
It is unclear exactly how far along Crown is to returning to suitability, but Kimmitt did praise the operator’s new parent company, U.S.-based Blackstone Group, for the changes it has made since its arrival last year.
“We are really pleased with the approach they are taking, the attitude and mindset,” Kimmitt told IAG. “They are being very cooperative with us which doesn’t mean they don’t push back on some things, but I think that is healthy. We’ve established a really good working relationship with the new owners and the new leadership team.”
She went on to reiterate, however, that “in the event that they are found unsuitable there is no intent to turn off the casino here.”
“It is public policy in Victoria that we have and will continue to have a casino so that’s not in question,” Kimmitt said, per IAG. “The government is committed to having a casino functioning but a casino that delivers sustainable benefits to Victoria.”
Crown, for its part, said in a statement to IAG that under its new Blackstone-led management structure, it has “accelerated its Future Crown program, which is transforming the business and delivering whole-of-company reform.”
The final topic of interest related to Crown’s development was the implementation of cashless play by the end of the year, which was one of the recommendations that came from the operator’s suitability assessment.
Kimmitt confirmed that there is currently a “technology working group that involves the VGCCC, Crown and the government, and we’re all working through that because there is a very long list of technical issues to make this happen.”
