The gaming regulator for New South Wales has initiated the first of five public hearings into allegations that local casino operator Crown Resorts Limited may have enlisted the services of shady agents in order to lure wealthy Chinese gamblers to its venues.
In a Saturday report on Bloomberg news service, it was revealed that the New South Wales Independent Liquor and Gaming Authority is probing claims that the Crown Resorts had used individuals connected to human traffickers, drug cartels and money launderers with the end goal of attracting foreign clients to its venues.
Potential shutdown:
The news service described how the probe, led by former New South Wales Supreme Court Judge, Patricia Bergin, could spell the end for Crown Resorts Limited’s operating license for its planned Crown Sydney facility. The Bangaroo harbour-side $1.5 billion property in central Sydney was set to begin welcoming gamblers later in the year, with 50 months of construction already completed.
Shady friends:
Bloomberg has reported that the inquiry could compel testimony from billionaire James Packer, Crown’s largest investor. Melco Resorts’ Chairman and CEO, Lawrence Ho Yau Lung, could also be called up to testify. The report lays out how Melco had been poised to acquire an almost 20% shareholding in Crown Resorts, only to halve the arrangement late last month, leaving it with a 9.9% stake.
Criminal ties:
Crown Resorts Limited is additionally responsible for the Western Australian Crown Perth venue and Victoria’s giant Crown Melbourne. loomberg reported that the investigation will take a hard look at the relationship between Ho and his father, 98-year-old Macau casino magnate Stanley Ho Hung Sun. The elder Ho has previously been banned from investing in Australian casinos amid allegations that his gambling empire is largely due to his associations with organized crime groups.
Possible policy review:
The news report went on to reveal that an inquest by the New South Wales Independent Liquor and Gaming Authority could possibly review the state’s gambling regulations and legislation as well as the exposure of local casinos to money laundering.
Changing faces:
Bloomberg also reported that Crown Resorts Limited has pre-emptively tapped new Non-Executive Chairman Helen Coonan to overhaul its corporate governance functions. Coonan, a 72-year-old ex-senator stepped into a role previously filled by executive chairman, John Alexander. She will wade into uncertain territory with a re-organized board, notably, new Chief Executive Officer Ken Barton.
