The cancellation of Crown Resorts’ Melbourne casino licence could be deferred for up to 18 months to give the gaming giant time to mend its ways or allow the Victorian government to appoint a new licensee in the least disruptive way, counsel assisting the state’s royal commission into the group have suggested.

The deferred cancellation would minimise the “extreme disruption” of immediately cancelling the licence on third parties not involved in the casino giant’s misconduct, such as some of its 12,000 Victorian staff.