As of April 23, Crown Resorts has been granted the privilege of running its sophisticated gaming center at Barangaroo in central Sydney with an unrestricted licence, marking the culmination of over three years of persistent regulatory challenges. Previously, in February 2021, an inquiry led to a scathing report by former Supreme Court judge Patricia Bergin, which questioned Crown’s suitability to manage a casino, citing instances of money laundering and links to organized crime via junket operations.
The investigation also criticized Crown for endangering employees through its aggressive pursuit of gamblers within Mainland China. Consequently, the $2.2 billion skyscraper’s casino operations remained shuttered to punters for over a year. Despite these setbacks, Crown was eventually granted a reprieve 16 months later, though under stringent supervision, following a takeover by Blackstone Group Inc. involving an AU$8.9 billion deal.
By undergoing a meticulously crafted $200 million restructuring plan, Crown Resorts implemented sweeping changes in key areas such as harm reduction, countering financial crimes, and enhancing governance, compliance, and risk management protocols, under the guidance of new ownership and executive leadership post-Blackstone acquisition.
The reform efforts, including the establishment of new boards with John Borghetti at the helm of Crown Sydney, did not go unnoticed. The New South Wales Independent Casino Commission (NICC), the regulatory authority succeeding the ILGA, praised Crown for its extensive overhaul, referring to the establishment as “fundamentally” restructured and now operating within the legal framework.
In its dedication to combat money laundering concerns, Crown inaugurated a groundbreaking cashless system for all electronic table games—a first for gambling businesses in NSW. This keen vigilance to adhere to statutory requirements has convinced the NICC of Crown’s capacity to function without its past monitored conditions.
Crown’s path to atonement was not solely corporate restructuring but was also characterized by a philosophical shift towards transparency and accountability. Philip Crawford, chief commissioner of NICC, recognized Crown’s transformation, emphasizing the need for Crown to continually demonstrate its commitment to these principles.
Crown’s journey echoes through recent history, particularly following another case in Victoria, where the Crown’s Melbourne casino also faced scrutiny. The Royal Commission into casino operations delivered a critical report in October 2021, but, acknowledging economic implications, refrained from revoking the casino’s license, opting to initiate a series of reform recommendations instead. In the wake of implementing these, Crown overcame significant hurdles, including a substantial $120 million fine issued by the Victorian Gambling and Casino Control Commission (VGCCC) for breaching responsible gambling protocols.
The recent developments symbolize a profound reformation within Crown Resorts, echoed by CEO Ciarán Carruthers’ vision of combining commercial success with trust, care, and integrity. As CEO of Crown Sydney, Mark McWhinnie, lauds the tireless efforts of his team in securing the license, it is evident that the NICC’s decision is an acknowledgment of Crown’s sincere and enduring commitment to higher industry standards. Crown Sydney is now touted as the safest gambling destination in the state.
This triumph in NSW arrives on the heels of the uplifting news from Victoria, casting Crown Resorts in a constructive light as it turns over a new leaf, aspiring to be an exemplar in the integrated resort industry. The company’s narrative is a testament to the belief that even the most challenged entities can reinvent themselves with the correct measures of responsibility, diligence, and commitment to ethical standards.
