The Royal Commission inquiry into the suitability of Crown as a casino licensee in Perth has been extended until March 4, 2022. The extension was requested by the Royal Commission to ensure a thorough examination and the production of a report in line with expectations. This move follows the extension of the Victorian Royal Commission deadline, allowing the Perth Casino Royal Commission to consider the findings and recommendations from that State. The government of Western Australia has received the interim report and will table it in August. The aim is to provide the commissioners with enough time to carry out investigations and deliver a comprehensive final report.
The Victoria inquiry focuses on assessing Crown’s suitability as a licensee in that specific state. During the hearings, it was highlighted that Crown is still considered “not a suitable licensee.” The counsel assisting the Commission pointed out issues with anti-money laundering measures and tax evasion efforts, suggesting that Crown may never gain public approval. The inquiry considers the flaws revealed by the Bergin Inquiry in New South Wales, reinforcing the view that Crown remains an unsuitable licensee.
In response to concerns raised by regulatory probes, Star Entertainment Group decided to withdraw its merger proposal with Crown. However, Star still believes that a merger could bring significant benefits. The current uncertainty surrounding Crown, however, prevents the merger from proceeding at the moment. Blackstone Group and Oaktree Capital Management have both expressed interest in acquiring Crown, but the board has not yet formed an opinion on these proposals.
Ultimately, these ongoing investigations and developments highlight the challenges faced by Crown and the wider casino industry in terms of ensuring compliance with regulations and public trust.
