Crown Resorts Cleared To Operate Sydney Casino By Commission

The NSW independent commission has granted Crown Resorts approval to operate its Sydney casino, this after being deemed unsuitable for a gaming license in the past. The decision comes after the Bergin inquiry exposed allegations of money laundering and links to international criminal syndicates through Crown’s relationship with private junket operators. However, since then, Crown Sydney has made extensive efforts to clean up its act and implement significant reforms.

In February 2021, the Bergin inquiry concluded that Crown Sydney Gaming Pty Ltd was not suitable to hold a gaming license for its $2.2 billion Barangaroo facility, and Crown Resorts Ltd was not suitable to be a close associate of the licensee. The inquiry shed light on incidents of money laundering and questionable practices associated with Crown’s VIP clients sourced from overseas.

Following the inquiry’s findings, Crown Sydney took immediate action to address the issues raised. The company underwent a significant transformation, cleaning out its board and senior management. Under new leadership and ownership by Blackstone since June 2022, Crown Resorts invested $200 million to implement reforms across harm minimization, financial crime, governance, compliance, and risk.

The NSW Independent Casino Commission (NICC) chief commissioner, Philip Crawford, announced the commission’s resolution that Crown Sydney had fulfilled its obligations and was now suitable to hold a casino license. Moreover, the commission determined that Crown Resorts was suitable to be a close associate of Crown Sydney. The decision signifies Crown Sydney’s transformation into a business that understands its responsibilities in terms of corporate governance and fulfilling legal and social obligations.

One crucial aspect of Crown Sydney’s redemption journey was recognizing the need to change its culture. The company embraced concepts of sustainability and responsible gambling, understanding the importance of operating at the highest industry standards. The NICC acknowledged the substantial progress Crown Sydney has made in this regard and emphasized the determination to prevent a recurrence of past issues.

“In making this decision today, the NICC is mindful of the dark places this company was in only a few years ago. The NICC is determined this shall not be allowed to happen again.” – Philip Crawford, Chief Commissioner of NICC

Crown Sydney was given conditional approval to open its casino at Barangaroo in June 2022, after a 16-month period of being considered unfit to hold a gaming license. The establishment of the NICC and new laws prohibiting NSW casino operators from dealing with junket operators have positioned the state to better ensure the company’s compliance moving forward. The NICC has been vested with powers to respond to the evolving challenges of the casino industry.

“The NICC has powers, which it believes will enable it to respond to the changing face of the casino industry and the challenges that’s going to bring in the future.” – Philip Crawford, Chief Commissioner of NICC

Crown Resorts acknowledged the decision of the NICC and highlighted the extensive efforts made to transform the business. The company’s investment of $200 million in reforms across various areas, coupled with a change in leadership and ownership, has been instrumental in bringing about meaningful change. Mark McWhinnie, CEO of Crown Sydney, expressed the company’s commitment to operating at the highest industry standards.

“The NICC’s decision today recognizes the genuine and sustainable changes we’ve made and our ongoing commitment to operating at the highest industry standards.” – Mark McWhinnie, CEO of Crown Sydney.