Crown Sydney casino licence denied after Bergin report released

The resignations of two of James Packer’s nominee directors from the Crown Resorts board has been welcomed after a damning report into the gamin company.

James Packer’s Consolidated Press Holdings has removed its last representative on the Crown board when non-executive director John Poynton’s consultancy arrangement was terminated.

The move was another signal to the regulator that Crown would follow the recommendations of the Bergin report to clean up its act to be suitable to hold a gaming licence.

A statement to the Australian Stock Exchange from Crown said: “Following the resignation of Guy Jalland and Michael Johnston as Directors of Crown earlier today and the termination of the consultancy arrangement between CPH and John Poynton, CPH is no longer separately represented on the Crown Board.”

It comes after NSW Independent Liquor and Gaming Authority chairman Philip Crawford welcomed the resignations of two of James Packer’s nominee directors from the board of Crown Resorts on Wednesday.

The billionaire went on the front foot after a NSW ILGA inquiry found the gaming company was unfit to operate a casino a Barangaroo.

Inquiry commissioner ­Patricia Bergin also found Crown could “achieve a fresh start” if it undertook some radical changes, including axing its chief executive Kenneth Barton.

Mr Packer’s private company Consolidated Press Holdings, which owns 37 per cent of Crown, announced on Wednesday morning that CPH’s nominee directors on the board Guy Jalland and Michael Johnston would be stepping down.

Crown at Barangaroo. The Bergin report was tabled in state parliament on Tuesday. Picture: Jeremy Piper

“It’s great news, that means somebody is listening to us,” Mr Crawford said. “It is a big message to me.”

The ILGA board meets on Friday to begin considering the 1000 page Bergin report which Mr Crawford said contained “breathtaking” links to organised crime and money laundering.

He said Crown had “let the whole side down and we have to do our best to fix it.”

But he did not rule out the possibility of the casino opening to coincide with the renewal of liquor licences for the bars and restaurants at Crown’s $2.2 billion tower at Barangaroo in April.

Mr Crawford said Crown chairman, former Liberal Minister Helen Coonan, was the person to do the job. “There is a lot to do. Helen Coonan is one person who can pull it off. She is capable and her integrity is intact.”

On Wednesday, Premier Gladys Berejiklian declared that “all bets are off” for the Barangaroo casino if the company doesn’t clean up its act and “things have to change”.

“Clearly on this occasion things have to change for anything to progress,” she told 2GB’s Ben Fordham.

“The report was damning in terms of potentially unlawful action in terms of allegations of failure to comply with various requirements.

“If a party doesn’t do the right thing … then all bets are off.”

Crown Resorts owner James Packer. Picture: Aaron Francis

She said it was “a matter for the company” whether they would operate the casino in the interim without a casino license.

When asked whether she had heard from Mr Packer, she chuckled and said, “no.”

It comes after the 18-month inquiry headed by the former NSW Supreme Court chief judge heard evidence of money laundering at Crown’s casinos in Melbourne and Perth and links to criminal syndicates through junket operators who jetted in VIP “whales” from Asia and other overseas locations.

The report, tabled in the NSW parliament on Tuesday, slammed Crown’s “corporate arrogance” and said the company’s “core problems” were its “poor corporate governance” and “deficient risk-management structures”.

The report made 19 recommendations that will be considered by the NSW‘s independent Liquor and Gaming Authority on Friday.

In order for Crown to “survive this turmoil and convert itself into a company that can be ­regarded as a suitable person” the report said it needed to undertake some radical changes.

These include punting Mr Barton as CEO, with the report finding he “demonstrated that he is no match for what is needed at the helm of a casino Licensee’’.

“The Authority would be justified in concluding that it cannot have any confidence in dealing with Mr Barton as a director of the Licensee or Crown,” it said.

Crown chairwoman Helen Coonan received a tick of approval, with her evidence showing “her character, honesty and integrity has not been and could not be called into question”.

The report also said Crown would not be considered suitable to hold a casino licence while ­Michael Johnston and Andrew Demetriou remain directors.

Crown would also be required to provide a “written remediation action plan” and undertake to adopt procedures for “governance, independent review (and) accountability”. A forensic audit of accounts would need to show no signs of money laundering.

The casino operator would also need to stick to its promise to no longer deal with junket ­operators.

Crown casino at Barangaroo in Sydney. Picture: NCA NewsWire/Bianca De Marchi

It is understood Crown ­Resorts is keen to work on embracing the changes to allow it to regain approval to operate a NSW gaming licence.

Its building has already opened bars, restaurants and a six-star hotel, while the gaming floor sits idle.

A statement from Crown said: “Crown will work with the New South Wales independent Liquor and Gaming Authority in relation to the findings and recommendations of the Inquiry Report as contemplated by the regulatory agreements between Crown, ILGA and the State.’’

The report also called for amendments to the Casino Control Act to tackle money laundering and the establishment of an Independent Casino Commission with the power of a standing Royal Commission to control the entire gaming sector.

It would also require anyone who holds more than 10 per cent of a casino to get approval from the ICC.