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Crown Resorts has been found unsuitable to operate Crown Melbourne, but the company will retain its licence, and will be subject to stricter oversight.
Victoria’s Royal Commission into Crown has found the operator unsuitable to continue to hold the licence under the Casino Control Act, and an unsuitable associate of Crown Melbourne.
But Commissioner Ray Finkelstein has opted against immediate cancellation of the licence, and has instead recommended the revision of the Casino Control Act to create the position of a Special Manager, who will have the power to oversee the affairs of a casino operator who has been found to be unsuitable.
The Special Manager for Crown will be in place for two years while the operator “attempts to undertake a comprehensive reform agenda to make it suitable.”
The Finkelstein Report opened with the conclusive statement: “The Royal Commission finds Crown is unsuitable to hold a casino licence on the basis that it has engaged in conduct that is ‘illegal, dishonest, unethical and exploitative.’ The Royal Commission notes that the scale of the wrongdoing is so widespread and egregious that ‘no other finding was open.’”
The operator was also found guilty of “grave, ongoing legal breaches and misconduct that contravened not only Australian laws but the laws of other countries often with the knowledge of Crown executives.”
The Victorian Government has accepted all of the Royal Commission’s findings, but added that “in implementing the priority recommendations, we are also going further in a number of areas.” It is introducing “tough new measures and stringent oversight of the casino operator” in order to ensure such failures do not happen again.
The Casino and Gambling Legislation Amendment Bill 2021 has now been introduced, commencing the “critical reforms required to ensure the casino is operated in accordance with the highest standards of integrity.”
Crown has released a statement saying it is currently reviewing the Report and the Victorian Government’s response, and that it will work “cooperatively and constructively” with the Victorian Government in relation to the findings and recommendations.
The Western Australia (WA) Government has announced an inquiry into Crown Resorts to investigate whether the operator is fit enough to hold its licence to run the Burswood casino in Perth.
It comes after an inquiry in New South Wales deemed Crown unfit to hold the licence at its new casino in Sydney, due to money laundering and junket operators who brought in high-rolling gamblers with links to organised crime.
WA’s Gaming and Wagering Commission (GWC) said the inquiry will have the powers of a royal commission, and has been called after the head casino regulator at its gaming authority stood aside following reports of his personal associations with Crown Perth staff.
Department of Local Government, Sport and Cultural Industries deputy director-general Michael Connolly last week stood down from his role as the GWC’s chief casino officer after reports he went fishing with Crown employees.
Crown has since announced it will “fully co-operate in relation to this inquiry and will continue to engage with the WA Commission in relation to its reform agenda and any further remedial steps identified in response to the NSW ILGA Inquiry.”
The operator’s executive chairman Helen Coonan commented: “Crown is determined to play a constructive role with all of its regulators as it works to restore public and regulatory confidence in its operations.”
This comes after it was forced to close one of its gaming floors due to a lack of footfall.
The Crown Sydney Casino will be reducing its operating hours and cutting 180 jobs, with it failing to attract enough visitors to the resort, according to the Sydney Morning Herald.
It was just two months ago when the casino was forced to close one of its gaming floors because of a lack of footfall; now, the operator has found that it does not have the capacity of visitors to warrant being opened 24/7, which has led to nearly 200 jobs being cut.
The casino’s new opening hours include being closed between 2am and 10am from Monday to Thursday and on Fridays it will operate between 10am and 4am. Meanwhile, on the weekend, it will open at 2pm, closing at 4am on Saturdays and 2am on Sundays.
Since opening in August 2022, 275 jobs have been cut from Crown’s Barangaroo premises, having faced expensive costs owing to
anti-money laundering failings
, among other things.
Crown Sydney’s CEO, Mark McWhinnie, has said the business will look to redeploy as much of the affected staff as possible to its other casinos in Perth and Melbourne, saying: “Our priority is to support the 180 impacted team members alongside their union as they determine their next steps.”
Just over two weeks ago, Crown Casino workers had threatened to go on strike ahead of the
Melbourne Cup
, asking for fair wage increases, higher pay for weekend and public holiday work, better rosters for work-life balance and payment progression based on service.
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