Crown Resorts Avoids Losing Melbourne Casino License
An inquiry into Crown Resorts gaming operations in Melbourne results in the operator maintaining its casino gaming license.
Crown Resorts has been under scrutiny for quite some time in many places. Years ago, the brand seemed untouchable and set for life, with players coming from across the world to take part in what Crown had to offer. However, after an inquiry began into the ability of the operator to offer gaming in Sydney, Australia, it has been downhill ever since. The operator has been accused and found guilty of money laundering failings as well as a host of other problems. After the Sydney inquiry, other properties of the operator came under fire, including one in Melbourne. Thankfully, the suitability investigation found that while the operator is failing in many ways, it shouldn’t lose its operating license.
Outcome of Victoria Probe
Victoria’s Royal Commission has been probing the Crown Resorts Melbourne property for two months and finally provided the results. The Commission ruled that the operator is not suitable to run its casino resort Crown Melbourne. However, a major concession was made by the state, with the Commission giving the company a time frame in which to make changes.
If the changes are made and the government finds the operations suitable, then Crown Resorts will be able to continue to offer services via this venue. In its findings, the Commission said that it found Crown Resorts had engaged in disgraceful conduct for many years. They said the conduct was illegal, exploitative and unethical.
The royal inquiry was led by Ray Finkelstein, a former federal judge. End in the end, the report was just over 650 pages long and was concluded on October 15. The findings were published on October 26 after the internal review was completed.
Implementing the Findings
After the inquiry findings were made public, the Victorian government said that it plans to implement the recommendations of Finkelstein. The most critical aspect of the findings is the judge ruled to appoint a monitor to oversee the resort for a two year time frame.
The individual would control the casino for two years ensuring that operations run smoothly. The goal is that this person appointed by the government would guide the company to becoming suitable to operate on its own.
Finkelstein said that the investigation was demanding. He pointed out that the licensing laws in Victoria hold operators to a high standard. Because of this, Crown should have its license revoked at once. However, such a decision would cause harm to the economy of Victoria and third parties that are not involved in the inquiry.
Because of the potential harm, Finkelstein gave the operator 24 months to make changes. The government is approving of this recommendation. Investors were happy that the license was not revoked and the shares of the company jumped by 11%.
The Crown Melbourne is actually the most important asset of the company within its domestic portfolio. The operator is also in charge of the Crown Sydney and the Crown Perth. Both of these venues were put under investigation as well.
Once the two year time frame is up, the manager put in charge will need to decide if they are satisfied the the operator is suitable once again. If the Victoria Commission for Gambling and Liquor Regulation is not satisfied with the outcome then the casino license of the casino will be revoked.
The company hopes that will not be the case but many changes will need to take place in order for the Commission to be satisfied and allow the casino license to remain in place.