Crown Resorts License in Australia Under Serious Test

Crown Resorts License in Australia Under Serious Test

The Melco Resorts & Entertainment announced a possible purchase of stakes in the company. It caused an additional disturbance for the local operator with the potential end of its reign in Australian ground. According to the Guardian report, there will be an official investigation on whether the Crown should keep its license for the Australian casino.

Background of Problem

Crown Resorts has recently faced serious charges for wrongdoings. It has been accused of allowing criminals to keep VIP s and finds itself in the center of a scandal in China where several casino employees were arrested. After the announcement that Melco will obtain a 20% stake of the Australian operator, Crown Resorts faced another problem.

Crown was awarded an Australian gaming license in 2014 under strict . According to the agreement, the operator is not allowed to have any business connection with Stanley Ho, which is famous as the father of Melco head – Lawrence Ho. The facility is also prohibited to deal with any of 60 Melco companies or individuals connected to these companies.

Right after informing the public about the Melco-Crown deal, it was unveiled that Stanley Ho used to be the director of Lanceford Company, Ltd. The latter company is on Crown’s forbidden list. Later on, it was uncovered that Stanley is the major owner of another forbidden company – Great Respect.

Investigation

Crown should undergo investigation which will be performed by NSW Supreme Court judge, Patricia Bergen. The operator will face an additional two investigations regarding the issue. Court examination has been commenced by NSW Independent Liquor and Gaming Authority. Right after investigation, the Australian Commission of Law Enforcement Integrity and Victorian Commission for Gambling and Liquor Regulation will organize public hearings regarding the issue. They will initiate the procedure after completion of all probes in the property.

The company has different instruments to fight against possible allegations. It can mention that Stanley’s inclusion is a simple omission, but the operator could hardly justify all the other claims. One of the harsh allegations puts forward that war criminals have been allowed to gamble at the venue.

Another accusation for the company has been connected to alleviating the travel visa process for VIP customers. All these visitors had been allowed to enter the Australian ground under disputable conditions. Victorian Commission for Gambling and Liquor Regulation issued the following statement:

“If commonwealth investigations identify misconduct by Crown or its employees, the VCGLR may be able to use this information in order to consider appropriate action.”

Source:

“Crown Resorts prepares to face questions over license suitability“, Erik Gibbs, calvinayre.com, January 20, 2020.

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