Crown Resorts is preparing to make a final effort to defend its casino in Melbourne before the inquiry that is set to decide whether the operating licence of the venue must be suspended or retained.
Tomorrow, the struggling Australian gambling giant will have the chance to make its case to the independent investigation that is being carried out in the state of Victoria and highlight the reasons why it should be permitted to keep its casino licence regardless of allegations associated with money laundering and repeated violations of the federal and state gambling legislation.
Previously, assistant counsels have recommended that the casino company’s licence is suspended because of the serious misconduct of the gambling laws. They also said that Crown Resorts did not make enough efforts to bring some changes to its corporate structure and culture.
For the time being, Crown Melbourne is the largest casino in Australia and accounts for almost 75% of the gambling operator’s overall profits. That is exactly why a favourable ruling, even one featuring some additional conditions, is extremely important for the future of the company and could help it keep its casino operating licences in Sydney and Perth. According to some experts, the best chance for Crown Resorts to retain its licence in the state of Victoria could involve enhanced state supervision for a period of 18 to 24 months, during which the casino giant would be required to make considerable changes to its management and invest in an overhaul of its compliance operations and systems.
Additional Conditions May Apply if Government Allows Crown Resorts to Keep the Melbourne Casino Licence
Crown Resorts is set to deliver its closing remarks to the Royal Commission in Victoria by the end of the week. According to industry experts, the struggling Australian gambling giant is set to offer some further changes in its board and management as part of the efforts to assure the commissioners that it takes required changes seriously.
According to Helen Bird, a lecturer on corporate governance in the Melbourne-based Swinburne Law School, the board, in its current form, has no prospect of continuing.
Helen Coonan, the current chair of Crown Resorts is likely to step down from the position earlier than initially planned following some criticism of her conduct during the course of the Royal Commission’s inquiry. Originally, Ms Coonan was expected to step down before the annual general meeting of Crown Resorts that is set to take place in October. The Chief Executive officer of the Melbourne casino venue – Xavier Walsh – who also faced criticism, is also expected to leave the operator.
After the gambling giant makes its closing submission, the Victoria Royal Commission’s inquiry is set to make a final recommendation regarding the fate of the Melbourne casino to the state government by October.
Apart from the investigation in Victoria, Crown Resorts is also facing another public inquiry in the state of Western Australia. It started in July and is set to determine the fate of the gambling giant’s Perth casino, with the deadline for the final recommendations extended until March 2022.
- Author
Olivia Cole
