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Blackstone Group overcomes adversity to secure Crown Resorts purchase approval

April 1, 2022 by Admin

Blackstone Group has navigated past the last regulatory block in its way of proceeding with its acquisition bid for beleaguered Australian casino operator, Crown Resorts.

This was confirmed via a filing with the Australian Securities Exchange, where Blackstone was handed written confirmation from the Foreign Investment Review Board (FIRB), confirming that the government was not opposed to the proposed buyout.

The FIRB operates as a non-statutory entity that advises the Australian treasurer and government regarding the country’s foreign investment policy.

This recent approval meets a key requirement of the scheme implementation deed previously publicised by the two parties. Crown has also advised that a scheme meeting with its shareholders will be held shortly.

Further Hurdles

Even with this approval in hand, various other conditions must still be satisfied for the acquisition to proceed. Crown’s shareholders must accept the offer and endorsements from gaming regulatory authorities and the courts must also be secured. Blackstone recently agreed to a $8.9bn takeover amount after sending various proposals to Crown.

Aside from the price, the offer came bundled with a series of conditions including, but not limited to, completion of expanded further due diligence, the establishment of a binding implementation agreement, and approval from casino regulators in Victoria, New South Wales and Western Australia.

Crown recently re-stated its undisputed recommendation to shareholders to vote in favour of the deal, a sentiment previously shared by the company’s chair, Ziggy Switkowski who said,

“The Crown directors unanimously recommend that Crown shareholders vote in favour of the scheme, in the absence of a superior proposal and subject to the independent expert continuing to conclude that the scheme is in the best interests of Crown shareholders.”

A Murky Past

The Perth casino royal commission created to examine the affairs of the casino operator recently concluded that Crown Resorts is unfit to retain its gaming licence in Western Australia, instructing the company to undergo a two-year remediation exercise, supervised by an independent monitor.

The near 1000-page report detailed a series of concerning findings, including that Crown had failed to minimise gambling-related harm, allowed junkets with criminal associations to operate at its casino, and had not been transparent in its dealings with the state regulator.​

Filed Under: Australian Casinos, Casino News

Star Entertainment’s CEO falls on his sword

March 30, 2022 by Admin

Australian casino operator, Star Entertainment Group announced recently that its CEO, Matt Bekier had handed in his resignation as an investigation into alleged transgressions of anti-money laundering and counter-terrorism laws at its properties gains momentum.

The public investigation has harmed the company’s fortunes, with its shares down a further 1.9% from an initial tumble of over 12% in 2022 alone.

An official statement revealed that Bekier had spoken to the board, saying that as the company’s managing director and CEO, he is ultimately “accountable for the effectiveness and adequacy of the company’s processes, policies, people and culture.” He added that hi taking responsibility was the correct thing to do.

Bekier’s immediate resignation came in the wake of testimony from the public hearings arranged by the official inquest that is particularly focused on the Star Sydney hotel and casino.

Dissecting the Truth

The Australian Transaction Reports and Analysis Centre (AUSTRAC) initiated its probe in June 2021 after hearing that the casino was ignoring customer due diligence and breaking several laws.

The local media caught wind of a confidential review that condemned Star for failing to address fraud and money laundering at its two resorts.

Analysts from financial services firm, Jeffries, addressed the issue in a note, stating,

“If Crown Resorts is a guide, we have a long way to go which could involve further management/board change and the now, very real possibility of Star losing its licence to operate, which could conceivably dash plans for an additional 1,000 Electronic Gaming Machines in Sydney,”

The recently concluded inquiry into rival casino operator, Crown Resorts found the company unfit to hold a gambling licence in Western Australia but allowed the operator to retain its existing license.

Bekier, who previously served as the CFO of Star, has agreed to work alongside the board to ensure a smooth handing over of his executive responsibilities. The company advised that his precise departure date has not yet been decided.​

Filed Under: Australian Casinos, Casino News

Crown Resorts loses WA casino chances but retains licence

March 25, 2022 by Admin

Crown Resorts has been deemed unfit to operate a casino in Western Australia and has been given two years to get its affairs in order under the watchful eye of an independent monitor.

This finding and recommendation can be found in the final report recently issued by the royal commission appointed to investigate allegations of wrongdoing at the Perth casino.

Former Supreme Court justices, Neville Owen and Lindy Jenkins, and former WA auditor-general Colin Murphy are the three commissioners who were tasked with conducting the inquest who found that Crown Resorts and its subsidiaries enabled money laundering activities at the casino.

They detailed that Crown had not implemented systems to identify suspicious transactions and how junkets with criminal ties had been allowed to freely operate at the property.

Remedial Action

The report also revealed that Crown had failed to employ gambling-related harm minimisation measures and that it had not displayed transparency in its communications when dealing with the state regulator.

Apart from the findings, 59 recommendations were put forward with the revelation that there were “numerous deficiencies” in the WA’s gaming and wagering commission and the Department of Local Government, Sport and Cultural Industries’ oversight of the casino.

Remediation will follow for Crown and its subsidiaries and this process will be managed by an independent monitor over two years.

WA’s racing and gaming minister, Tony Buti, shared that the government is happy with the key recommendations and would amend the state’s casino laws accordingly.

In an interview with reporters, Buti said,

“It is clear that over decades, standards have eroded, integrity has been lost and the transparency of Western Australia’s casino operator has diminished. In many cases, Crown has demonstrated poor corporate citizenship.”

“It is a privilege to hold a gambling licence in Western Australia and the royal commission has shown that Crown has, at times, abused that privilege. Crown needs to do better but the state’s regulator also needs to do better,” he added.

Second Chances

Buti went on to defend the decision to allow Crown to keep its licence, explaining that the government is prioritising the employment of the close to 5000 staff at Crown Perth.

Crown’s CEO, Steve McCann, stated that said the company would cooperate with the state government to put the recommendations into practice and added that the company has already embarked on a profound transformation process.

“This includes investment in people, systems, processes, culture and a sharp focus on responsible gaming and the prevention of financial crime. Crown remains committed to continuous improvement across all facets of the business and is prioritising the delivery of safe and responsible gaming across all of our resorts, including Crown Perth,” he said in a statement.​

Filed Under: Australian Casinos, Australian Gambling

Fair Go Casino invites you to its 5th birthday bash

March 18, 2022 by Admin

Fair Go Casino turns five this March and it is cementing its reputation as one of Australia’s best online casinos with a birthday celebration filled with gifts for you.

“Of course, there are going to be more hidden prizes, special rewards and promos to come. You just need to keep your eyes peeled over the next few weeks. So what are you waiting for? Come join the celebrations at Fair Go Casino,” the casino announced.

Gifts Galore

For five weeks. Fair Go Casino has over $30 000 in cash prizes up for grabs across thrilling raffles and tournaments.

Fair Go has established a generous and reliable reputation over the last 5 years, with regular promotions, rapid transactions, and friendly customer support. The casino is constantly looking to add much value as possible for players and recently introduced Freeroll Tournaments to boost engagement and excitement.

Fair Go is getting the party going with a $5000 Casino Guaranteed Freeroll Tournament where entry is free but you can use $10 add-ons to boost your winning chances.

Weekly Tournaments will happen throughout March with a $25,000 prize pot on the line when you play selected premium pokies including Cash Bandits, 5 Wishes, Hyper Wins, Lucky Catch, and Plentiful Treasure.

Ready to Raffle

Fair Go Casino’s birthday month gets progressively better with its weekly with an enhanced Anniversary version of its Fair Draw Raffle, a player favourite that dishes out generous prizes.

The first week’s prize is $100, the second week could see you win $200, week 3’s award is $500 and for week 4, $1000 is on the table. All it takes to stay in the running for the draw is $500 in deposits each week.

Fair Go Casino attracts thousands of players with a varied and vast selection of pokies and lucrative promotions and tournaments.

Rebecca Ryder, Fair Go Casino’s Manager encouraged players to take part in the celebration, saying,

“If you’re just as excited as us about our five-year Anniversary promos then now’s the time to play. Whether it’s our $5,000 Casino Guarantee Freeroll tournament or our doubled-up Fair Draw raffle, you won’t be short of cash to win. Of course, there are going to be more hidden prizes, special rewards and promos to come. You just need to keep your eyes peeled over the next few weeks. So, what are you waiting for, come join the celebrations at Fair Go Casino.”​

Filed Under: Australian Casinos, Casino News

Public hearings scheduled for Star Entertainment inquest

March 16, 2022 by Admin

Australia’s gaming regulator for the state of New South Wales recently proclaimed that it would be conducting public hearings to further its investigation into casino operator The Star Entertainment Group Limited.

In an official press release, the New South Wales Independent Liquor and Gaming Authority (NSW ILGA) advised that the investigation into the owner of the Star Sydney venue has “so far largely been undertaken in private’ but is to now be moved into the public domain under the leadership of prominent local attorney Adam Bell as ‘witnesses should give evidence publicly.”

Intensified Efforts

The Star Entertainment Group Limited learned in October 2021 that its imminent five-year license review would be broadened to examine allegations that it may have been involved in money laundering activities. This intensified inspection began eight months after Crown Resorts Limited was barred from adding casino gambling to its new Crown Sydney facility due to a slew of proven transgressions.

Adam Bell, prominent equity, commercial and administrative law specialist, assumed control of The Star Entertainment Group Limited investigation following his stint as a senior counsel for the Crown Resorts license suitability enquiry.

Philip Crawford, the Chairman at the NSW ILGA announced in the press release that Bell has been tasked with investigating ‘a number of topics’ and will have all of ‘the powers, authorities, protections and immunities of a Royal Commission’.

Crawford added that this examination seeks to uncover if the Star Entertainment Group Limited has sufficient ‘anti-money laundering and counter-terrorism financing systems’ and whether it methodically scrutinizes and manages its relationships ‘with close associates, junket partners and high-rollers.’

“Bell’s review will consider how effectively The Star Sydney is complying with its statutory obligations and whether it remains suitable to hold a casino licence. This includes examining to what extent the casino is free from the infiltration of criminal interests such as money laundering and how well it is administering its obligations to minimise gaming harms,” he added.

Moving Forward

Crawford wrapped up his statement by advising that Bell can be expected to publish his findings by June 2021 and that the upcoming public hearings would be held virtually via video live streams.

 “We have every confidence that the review will thoroughly investigate The Star Sydney’s current operations and compliance with its statutory obligations and make appropriate recommendations for remedial action if necessary,”  he concluded.

Filed Under: Australian Casinos

Queen’s Wharf Brisbane takes shape

February 19, 2022 by Admin

The designs for The Star Entertainment Group’s new project have been revealed. The $3.6 billion, 71-storey Queen’s Wharf development will feature more than 800 apartments and will tower at over 250 metres.

Destination Brisbane Consortium, which is a joint venture spearheaded by The Star Entertainment Group, Chow Tai Enterprises, and Far East Consortium, awarded the construction of the fifth skyrise in the resort development to leading developer Multiplex in April 2019.

Chris Hinds, the Sales Director of YPM Group, an Australian-based project marketing company, revealed that the apartments would be up for sale in two months.

“We are so excited to announce Queen’s Wharf Tower, the tallest tower in the Queens Wharf Precinct is set to be released in April 2022.  Market interest is strong, and we have started connecting with potential buyers who have been registered after missing out on the first time, Queen’s Wharf Residences,” he said.

“Queen’s Wharf Residences is the fastest-selling residential project in Queensland after attracting an unprecedented level of local buyer interest and selling 75 per cent of the 667 apartments within two months,” Hinds concluded.

Exciting Reveals

It has taken seven years for the project to reach this point. The process began when the Echo Entertainment Group (now Star Entertainment) beat Crown Resorts and Greenland Holdings Group to the punch.

The project’s retail component will be headed up by DFS, a luxury brand retailer that intends to construct a three-level Galleria Emporium within Brisbane’s 40,000 square metre shopping precinct.

Once the project is completed, Queensland residents will have access to a new casino, four hotels, and over 50 new bars and eateries, accompanied by more than 2000 residential apartments.

Simon Crooks, Destination Brisbane Consortium’s Project Director, advised that Queen’s Wharf Brisbane will be an impressive addition to the city skyline and that its early 2023 opening is sure to revitalise Brisbane’s CBD.

“With the main integrated resort reaching level 20 in parts, construction has spilled into the public space areas and heritage buildings, many of which will become the locals’ favourite new dining spots. The nine heritage buildings, dated back to the 1800s, are being carefully restored and transformed into new shopping outlets, restaurants and bars as well as spaces for events, entertainment and performance, Crooks commented.

“Further to that, sections of the SkyDeck will be installed mid-year as we start to form Brisbane’s newest and hottest venue in town come 2023,” he added.​

Filed Under: Australian Casinos, Australian Gambling

The Star whips out its chequebook for $13 million in underpaid wages

February 9, 2022 by Admin

The Star, an Australian casino operator recently completed an internal wage review that revealed that it had underpaid close to 2200 employees over six years at its flagship The Star Sydney casino resort.

Inconvenient Truths

As a result of its internal findings, The Star Entertainment Group is now obliged to pay $13m to its affected workers. While this is not good news for the company which is enduring reduced revenues due to the economic consequences of the COVID-19 pandemic, it has at least salvaged its reputation by making this discovery internally as opposed to it being exposed by an outside entity.

The Star explained in a recent statement that it had advised the Fair Work Ombudsman and the United Workers Union of the error and its plan to correct it. Ahead of the release of its half-year report on February 17, The Star has revealed that it expects a statutory net loss of close to $75m.

Open Cards

The Star’s Marketing Director Matt Bekier made a sincere apology to affected workers and said that the operator is “committed to doing the right thing by acting transparently.”

“Our priority is to address this issue and to ensure that it doesn’t happen again,” he said.

The Star added that it has “improved its processes, systems, and training and has a plan in place to ensure salaried team members’ pay is correct moving forward. “The company further elaborated that the $13m amount comprises back pay, interest, and pension contributions.

This move, while ethical, comes at an inopportune time for the company which is facing a future rife with even more pandemic-related economic issues.

When it Rains, it Pours

Aside from this most recent issue, The Star has been battling challenges on several fronts. In May 2021, the operator’s bid for casino giant Crown Resorts was a non-starter as it was driven off by the high stakes that rival bidders had brought to the table.

The Star also currently finds itself under investigation by the Australian Transaction Reports and Analysis Center (AUSTRAC). The inquiry relates to alleged breaches of anti-money laundering and counterterrorism regulations. AUSTRAC’s investigation will reportedly “include multiple entities under the company.”​

Filed Under: Australian Casinos

Tasmanian casino operator endures costly cyberattacks

February 5, 2022 by Admin

Federal Group, an Australian casino operator, has been the recent target of cyberattacks. One such event caused the shutdown of gaming machines, resulting in millions of dollars of revenue being lost with additional amounts being spent on recovery costs. The company would not bow to ransom demands to cease the attack, which ended up prolonging the situation and adding to the operator’s existing woes.

Heavy Toll

Federal Group is the owner of Tasmania’s WrestPoint casino in Hobart and Country Club Tasmania casino in Launceston. The operator embarked on the “encryption of many systems” as well as a partial shutdown of its gaming machines and hotel booking system following an attack.

The company’s refusal to respond to the hackers’ransom demands are documented in its 2020/21 financial statement, where Executive General Manager, Daniel Hanna advised that the company had yet to fully quantify the true cost of the cyberattacks, but estimated it to be at least a few million dollars.

He added that the 2020-21 financial year was the Federal Group’s “worst in nearly 20 years” with government-enforced closures and the COVID-19 epidemic affecting revenue.

End of an Era

In addition to its casino interests, Federal Group also has several hotels and hospitality venues within its portfolio. The company additionally holds all of Tasmania’s gaming machine licenses, a monopoly that will soon run its course.

The introduction of a new bill means that from 2023, venue operators will be able to purchase or lease machines from their chosen sources, where they were previously limited to only Federal Group. As a concession, the Tasmanian government has agreed to reduce the Federal Group’s gaming revenue tax at Wrest Point or Country Club Tasmania.​

Filed Under: Australian Casinos

Victoria’s proposed pre-commitment limits on Crown pokies stopped in their tracks

January 29, 2022 by Admin

A proposal by Victoria’s government to compel players at Crown Melbourne to adhere to maximum loss and time limits before they begin gambling has all but been abandoned.

These suggested measures originated from the Victorian royal commission into Crown, which was run by Ray Finkelstein, QC who recommended stringent new rules to tackle problem gambling. These included the aforementioned mandatory pre-commitment limits on how much and how long players intended to spend on the casino’s over 2500 pokies.

At the time of the commission’s findings, the Victorian government had committed to supporting Finkelstein’s 33 recommendations “in principle”.

Heavy Resistance

It appears, however, that the pre-commitment recommendation was doomed to failure as it met significant opposition from the Department of Justice and Community Safety. The department has pointed out that a similar mandatory system implemented in 2012 in a Canadian province was abandoned after only two years.

The Canadian initiative was roundly criticised for having little to no impact on problem gambling and was rife with loopholes such as the pre-commitment cards that could be used by different players and situations where players obtained numerous cards.

On the Warpath

Commissioner Finkelstein’s scathing report tore into Crown’s management of problem gambling, describing his findings as “perhaps the most damning discovery by the commission”.

“Crown Melbourne had for years held itself out as having a world’s best approach to problem gambling,” the report continued.

The commission’s evaluation of YourPlay, a government-managed voluntary pre-commitment system, was that it had “not been successful”, as it had achieved a minimal uptake rate and there were no mechanisms to stop individuals from playing once they had reached their limits.

Finkelstein recommended that YourPlay should be scrapped in favour of a “full, mandatory, binding, pre-commitment system for Australian residents gambling on electronic gaming machines at the Melbourne casino”.

He advised that players should have the ability to implement weekly or monthly limits on their losses and playing time. Gamblers would additionally be barred from playing pokies for over 12 hours over any 24 hours.

2021 saw the government including nine of Commissioner Finkelstein’s recommendations in approved legislation. These included appointing the former public sector corruption watchdog, Stephen O’Bryan, as a special manager charged with monitoring Crown for two years, after which he will determine whether the venue’s licence should be revoked.

The government has committed to a second set of legislation to be introduced in 2022 to integrate the outstanding 24 recommendations, which would include a large-scale initiative to curb problem gambling at the casino. Further details regarding the implementation of the new system are not available at this time.

Contentious Past

The spokesperson for the Gaming Minister, Melissa Horne, advised that the government acknowledges the “breadth and complexity” of the recommendations that have yet to be implemented. Horne explained that the second allotment of legislation would cover the last of the recommendations.

“We support these recommendations in principle, and further detailed analysis and consultation will be undertaken,” she added.​

Filed Under: Australian Casinos, Australian Gambling

SkyCity introduces its own vaccine mandate for its Adelaide venues

January 15, 2022 by Admin

SkyCity Entertainment has announced that it will require proof of COVID-19 vaccinations for entry to any of its venues in Adelaide, with effect from Thursday 10 February.

This measure applies to all employees and patrons aged 18 and older who intend to enter gaming venues and anyone over the age of 16 at non-gaming venues. All will be required to show proof of full vaccination or a medical exemption to gain entry.

This covers venues within the casino and hotel Eos by SkyCity, as well as bars and restaurants like Sol, iTL, Madame Hanoi and Sean’s Kitchen, to name a few.

David Christian, the COO at SkyCity shared that this move is part of the company’s intention to ensure that it employs the most stringent levels of protection against COVID-19 and to secure the health and safety of its staff and customers.

“As one of Adelaide’s largest single-site entertainment venues and as a significant employer, we need to take measures to help keep everyone safe,” he said.

“While we have existing robust health and safety measures in place to limit the risk of exposure to COVID-19, public health information and research confirms that COVID-19 vaccines provide the best protection for our employees and customers. SkyCity has been significantly impacted by the outbreak, and we have been encouraging our people to get vaccinated at the earliest opportunity.

“We would like to thank our highly valued employees and customers for their understanding,” he concluded.

Customers will need to show their COVID-19 digital certificate via their smart device or with photo identification accompanied by a printed certificate. Any customers with official medical exemptions will similarly need tooffer appropriate proof.

Filed Under: Australian Casinos, Australian Gambling

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