Crown’s casino licence in peril
BILLIONAIRE James Packer and his private company, Consolidated Press Holdings, should be considered unsuitable associates of casino group Crown Resorts, an inquiry has been told.
The influence of CPH compromised reporting lines at Crown — a key factor that led to the arrest of the casino group’s staff in China, the inquiry has heard.
In a development that could have significant implications for Melbourne-based Crown, Adam Bell, counsel assisting the NSW casino inquiry, has argued Mr Packer and CPH are not suitable parties to hold a licence.
It potentially throws into question Crown’s operation of the casino due to open next month in Sydney.
“The evidence presented to this inquiry demonstrates that the licensee is not a suitable person to continue to give effect to the licence,” Mr Bell told commissioner Patrica Bergin. It was also unsuitable for Crown to be a close associate of the licensee, he said.
Mr Bell said James Packer’s shareholding in the company had a “deleterious impact” on the “corporate governance of Crown”, and the influence of CPH compromised reporting lines, ultimately leading to the arrest of Crown staff in China.
In 2016, 19 Crown staff were arrested in China for illegally promoting gambling there.
Mr Bell said the influence of CPH and Mr Packer had been against “the public interest”.
The NSW Independent Liquor and Gaming Authority, which is scrutinising Crown’s suitability to hold a casino licence, ended public hearings last month after 48 days of evidence over nine months.
Mr Packer, whose stake in Crown is worth more than $2bn, was among those who gave evidence, along with executives and board members.
Crown is to open its casino in Sydney on December 14, while Ms Bergin’s final report is not due until February 1, which raises the question of whether the inquiry could produce an interim report while Crown delays the opening.
If the inquiry finds Crown is unsuitable to hold a casino licence, Ms Bergin will report on what changes would be required to make it suitable.
However, under the licence Crown signed in 2014, it is entitled to claim compensation worth 10½ times the estimated negative financial impact from any government action that affects the licence.
The government also cannot amend the Sydney licence without Crown’s agreement.
But Crown is not entitled to compensation if the gaming authority terminates its licence outright on “disciplinary” grounds, which can include finding that it is unsuitable.