Australian Casino Gets Two-Year Probationary Period From Money Laundering AllegationsGovernment Official Will Oversee Day-To-Day Operation For The Timeframe And Owner Must Dilute Stake By 32% |
|
One of Australia’s largest casinos has two years to alter the way it conducts business or lose its gaming license.
According to a report from Reuters, gaming regulators released a report on Tuesday that called Crown Resorts unsuitable to hold a gambling license, the government decided to give the company a two-year probationary period instead of revoking the license altogether.
Regulators will strictly oversee day-to-day operations during that period and at the end of the term, will decide whether the company is fit to continue holding the license. Along with the probation, the Royal Commission that wrote the report is also recommending a fine of A$100 million ($75 million) and forcing billionaire James Packer to reduce his stake in Crown from 37% down to just 4% by September 2024.
At the end of 2020, the government began its investigation into Crown Resorts after accusations were made that some of the casino’s accounts were being used to help Chinese high rollers associated with organized crime launder money.
The initial report was completed last February, which exposed the money laundering activity. Commissioner Patricia Bergen completed the investigation and said that Crown was “facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals connected to criminal groups.”
When the report was released, CEO Ken Barton stepped down from his position. The most recent publication from the Royal Commission said that Packer was a major influence in the money laundering activity. Steve McCann eventually took his place.
It said that Packer acted in ways which were “illegal, dishonest, unethical and exploitative” and said that his actions were “so callous that it is hard to imagine it could be engaged in by such a well-known corporation.” There were no further details about what specifically Packer did.
As part of the probation, an independent manager would be permitted to investigate the casino’s operation at any time, influence board decisions, and inspect the books. If that manager feels that Crown hasn’t improved its operation in that timeframe, the license could be cancelled altogether.
The Crown Casino was home to the country’s largest poker series, the Aussie Millions. It was last held before the pandemic took hold in January 2020 and has not been rescheduled yet. Vincent Wan won the most recent Aussie Millions main event and other past winners include two-time World Series of Poker bracelet winner Ari Engel and poker’s all-time money leader Bryn Kenney.
Last March, the Blackstone Group submitted a proposal to buy the casino for $6 billion. The deal never materialized, and the New York-based investment group ended up expanding its Las Vegas Casino portfolio instead.
After it sold the underlying casino business of the Cosmopolitan Las Vegas to MGM for $1.625 billion, it owns the real estate on the west side of the Las Vegas Strip between Mandalay Bay and Bellagio. It also owns the real estate for MGM Grand as well.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
