Yahoo Finance Heat on Crown over its plan to open Barangaroo casino before inquiry verdict
Crown Resorts is under growing pressure to delay the planned December opening of its Sydney high roller casino, Crown Towers at Barangaroo, until the independent Liquor and Gaming Authority decides on its suitability to hold a licence.
Crown chairman Helen Coonan confirmed at the annual general meeting last week that Crown was “on track” to open in mid-December, despite the fact it will not know the outcome of the NSW inquiry being conducted by former supreme court judge Patricia Bergin SC.
While Bergin has made no direct comment, the counsel assisting the inquiry, Naomi Sharp SC, asked Coonan whether the board “has had any discussion regarding the prudence or appropriateness of opening the Crown Sydney casino in mid-December this year given that this suitability review will be reporting after that date”.
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Coonan replied that the date was a “matter exercising everyone’s mind” but noted it was not entirely in Crown’s hands because a government milestone required it to open by mid-February 2021.
The December opening appears to have become something of a stalemate between the casino regulator, the Independent Liquor and Gaming Authority, and Crown.
The Guardian understands Crown is still planning to proceed with the casino opening unless it is directly told by the gaming authority not to open.
Crown is continuing to recruit staff for its gaming operations on its website and is in regular discussions with the ILGA over other matters including liquor licences for the casino, hotel and restaurant precincts.
Bergin must make her recommendations to the ILGA by 1 February, but it is the ILGA board that makes the final ruling on suitability and Crown argues this could take more time.
There is nothing to prevent Crown opening the hotel and restaurant complex in December, but opening the casino ahead of the ruling could see it then shut down if it’s found unsuitable, or if the ILGA says more measures are needed for Crown to become suitable.
The federal MP and anti-gambling campaigner, Andrew Wilkie, said it would be entirely inappropriate for Crown to open its Sydney casino before Bergin completes her inquiry.
“That Crown is even talking about opening is more startling evidence of the company’s brazen arrogance and alarming confidence that it has political top cover from the federal and state governments,” he said. “In the circumstances, Crown shouldn’t even be assuming it will have a licence for Sydney.”
NSW Independent MP Justin Field, who has also campaigned for gaming reforms, described any opening before the report was finalised as “highly inflammatory”.
“It is clear from justice Bergin’s statements to date that the question as to whether or not Crown should retain a casino licence in NSW is an open one,” he said. “But regardless of the position taken by the commissioner on that point, it is clear major changes to operating conditions and to the state’s gambling laws and regulations are needed.”
Bergin will hear final submissions next week from counsel assisting the inquiry. They could provide some insight into her possible findings.
Bergin made it clear on the last day of hearings that she wanted to hear arguments on whether Crown, the licensees and any close associates were still suitable to hold the second casino licence in NSW. She wants submissions on what the evidence shows as to criminal links and money laundering.
She specifically asked whether she should be applying the same standard as she would for a new applicant for a licence who had involvement in money laundering.
Then she will move to the second step – whether there are measures that can be taken to make Crown suitable. The measures could include caps on shareholdings, changes to the board or management, better internal controls on risks, enhanced money laundering systems and more scrutiny of junkets.
Related: Crown chairman Helen Coonan admits casino 'facilitated' money laundering
Lawyers representing Crown and its largest shareholder, James Packer, who holds a 36% stake through his private company, Consolidated Press Holdings, will then make submissions. They are expected to reject a finding of unsuitability and argue change is well underway to make the company suitable. But this process could further delay the opening.
While Crown has said it is implementing new anti-money laundering controls and creating new positions to ensure compliance, ILGA may want to be satisfied that change has occurred.
Despite pointed questioning by counsel assisting during the inquiry about whether directors had the skills and were sufficiently independent of Packer, only one director, John Horvarth, resigned at last week’s AGM and the board remains largely unchanged.
Coonan has reassured shareholders a renewal process is underway but it is likely to take several years without voluntary resignations.
The uncertain status of Crown’s licence could also pose an issue for politicians attending the opening.
“If the opening does go ahead, I’m calling on premier (Gladys) Berejiklian to direct her ministers not to attend and to not give Crown a good news story to distract from the serious evidence before the inquiry,” Field said. A spokesman for Crown declined to comment.
