Crown ‘should not be trusted’ to clean up its act

Damning advice given to royal commission says Crown Melbourne “cannot and should not be trusted” to clean up its act without supervision.

Crown Melbourne “cannot and should not be trusted” to clean up its act without supervision, if it is allowed to retain its casino licence.

The damning advice is contained in a new submission from the counsel assisting Victoria’s royal commission into the casino operator.

The probe last week heard Crown Resorts was unfit to hold a licence for its Southbank venue after leaving itself exposed to ­exploitation by money launderers.

However, Crown could be given a chance to improve its practices, under proper supervision, ahead of a review slated for 2023.

“Having regard to the ­nature and extent of Crown’s failings, the task of reform is enormous, the path is uncertain, and the outcomes are speculative,” the counsel ­assisting said.

“While the evidence suggests the reform of Crown may be possible, it will be complicated and nothing short of complete, holistic, bottom up and down.

“If Crown Melbourne is permitted to continue to hold the casino licence, it cannot and should not be trusted to ­implement the reform process unsupervised.”

The submission also says those regulating Crown Melbourne’s affairs have reason to doubt – based on evidence to the inquiry – whether they could trust the operators again.

Crown faces new pressure over its Melbourne casino licence.

The only way they could be trusted to retain their licence is if the state government and gambling authority were prepared to give Crown the time to make changes, and trust it would.

“Leaving Crown in effective control of the casino, a licensee found to be unsuitable, cannot occur unless that control were subject to supervision,” the submission said.

Laws should also be changed to create the office of a supervisor, who would have powers to conduct their own investigations, and Crown would foot the bill.

Counsel assisting did not prescribe reforms, acknowledging the regulator may punish the operator after the commissioner’s findings are made in October.

However, the group recommended against the involvement of Crown Resorts executive chair Helen Coonan and Crown Melbourne chief executive Xavier Walsh.

In the event the past failings of Crown make the “path to ­redemption so enormous” and the licence is cancelled, the commission has been warned of the fallout.

“Cancellation of the casino licence with immediate effect … would be highly disruptive – having the potential to cause significant harm to many third parties who have had no involvement whatsoever in the misconduct of Crown Melbourne over the years,” the counsel assisting stated.

Instead, a year to 18 months would be needed for the cancellation process and transition of licence to a new holder.

Originally published as Crown ‘should not be trusted’ to clean up its act