Why is the Crown Casino in the news so much?
The report:
Crown has been in the news over the past few weeks because of a report released by former Supreme Court judge Patricia Bergin. Bergin was asked to investigate whether it was suitable for Crown to keep its license for the new Barangaroo casino. The report was commissioned by NSW's Independent Liquor and Gaming Authority (ILGA), and came after 2019 media reports alleged Crown had facilitated money laundering activities at its casinos.
What did it find:
The report found that Crown was unsuitable to operate the new Sydney casino at Barangaroo. This was due to:
Evidence of money laundering at its Melbourne and Perth casinos
The arrest of 19 staff in China in 2016 for illegally promoting gambling
Associations with junket operators (agents who arrange VIP treatment for overseas high roller gamblers)
What’s happened since?
Since the release of the report, there have been several high profile resignations, including:
Crown CEO Ken Barton
Crown Board Director Andrew Demetriou
Of the three directors James Packer had appointed to the board, Michael Johnston and Guy Jalland have resigned and John Poynton is no longer associated with Packer (but will remain on the board)
So what’s going to happen to the new casino in Sydney?
In a statement released to the ASX this morning, Crown said it had been officially informed that it had breached a clause of the state's gaming regulations. Crown will now enter a consultation process with the ILGA in an effort to address the breaches.
Right now, Crown is not permitted to open its Barangaroo-based casino because of the breaches.