Crown labelled 'unsuitable'
Crown says it will open its $2.2 billion casino in Sydney, despite the company facing the cancelation or suspension of its licence.
An inquiry this week has been presented with damning evidence about the Crown’s affairs, leading many to expect disciplinary action is on the cards.
The Independent Liquor and Gaming Authority (ILGA) is examining the conduct of Crown in its existing casinos in Melbourne and Perth, with a special focus on its international VIP gaming operations.
Commissioner Patricia Bergin is expected to give her final decision early next year. It is expected that Crown will forge ahead with its December 14 opening date for the $2.2 billion Barangaroo casino in the meantime.
Counsel assisting the inquiry Adam Bell SC said this week that the gambling giant is not fit to hold a gambling licence in its current state.
The inquiry has seen evidence that suggests Crown has ignored warning signs of money laundering within its casinos.
The company has allegedly made efforts to partner with ‘junket’ operators linked to organised crime, and is also accused of ignoring the safety of its staff in China, who were technically working illegally.
Four years ago, 19 Crown employees were arrested and charged for promoting gambling while attempting to source VIPs for its high-roller business.
Sixteen Crown staff were eventually imprisoned in China.
The inquiry heard evidence that Crown should have been aware of the risk to staff after a widely publicised crackdown on such operations in China. Staff had also raised concerns themselves.
Mr Bell said it all counts against Crown in its effort to seem suitable to hold a casino license.
“We submit that the facts and circumstances which culminated in those arrests are directly relevant to the present suitability to the licensee for at least the following reasons,” he said.
“We submit that the evidence in relation to the China arrests demonstrates serious and systemic failures within those structures and frameworks.
“Secondly, the evidence in relation to the China arrests provides an indication into how Crown Resorts and its leaders may respond to dynamic and changing circumstances that are inherent within its business.
“This is underscored by the current board's strong public defence of Crown Resorts' conduct in this regard in a manner, which it is submitted failed to have due regard of the facts and circumstances which led to the arrests.
“It's submitted that the culture within Crown Resorts exposed its staff to risk and led to the failure to adequately respond in the face of escalating risk.”
Mr Bell urged the Commissioner to rule Crowns major shareholder James Packer be banned from any association with Crown Sydney.
The inquiry will hear Crown's case in response to the allegations next week.