Crown: Regulator says Ken Barton and Andrew Demetriou need to go as Helen Coonan commits to ‘root and branch’ change

Crown’s chair accepts the need for massive change after the regulator said more heads must roll at the embattled casino giant.

More heads must roll at Crown Resorts if it is serious about trying to keep its Sydney gaming licence, the head of the NSW gambling regulator says, while the casino giant’s chair accepts “root and branch” change is needed.

Speaking on ABC radio, NSW Independent Liquor and Gaming Authority chair Philip Crawford confirmed that Crown chief executive Ken Barton and high-profile director Andrew Demetriou needed to resign if the company wanted to keep the licence for its epic new $2.2bn Sydney Barangaroo venue.

The licence was granted in July 2014, allowing gaming at the casino for 99 years from November 2019.

But the planned December 2020 opening was delayed by ILGA after media allegations Crown had facilitated money laundering at its Perth and Melbourne venues by Asian high-roller ‘junket’ tours – which had known links to organised crime – were substantiated at last year’s lengthy inquiry.

“There needs to be changes in the top and in senior management,” Mr Crawford told ABC’s RN on Thursday.

“A lot of board changes, and that’s started already, and we look forward to seeing a bit more of that.”

NSW Independent Liquor and Gaming Authority chair Philip Crawford says more heads need to roll at Crown. Picture: NCA NewsWire/David Swift

Crown announced the shock resignations on Wednesday of James Packer’s main Consolidated Press Holdings lieutenants Guy Jalland and Michael Johnston, who were appointed to the board as nominees to represent the 36 per cent stake held by the billionaire’s private company.

That same afternoon, Crown announced director John Poynton’s consultancy arrangement with CPH had been terminated and he was as a result no longer a nominee on the Crown board — effectively removing all of Mr Packer’s influence.

In her findings, Commissioner Patricia Bergin said that influence had been powerful and ubiquitous and had caused a “serious imbalance” within Crown’s operations.

Mr Crawford – who said on Wednesday Crown would need to “blow itself up” in order to meet the NSW licensing requirements – told the broadcaster the regulator might push for more changes to the board, but further dialogue with the company would be needed.

“They’ve got a lot of work to do,” he said.

“They haven’t operated in this state yet and they may never.”

In a statement to the Australian Securities Exchange on Thursday, Crown chair Helen Coonan said change had already begun, with the sudden departures demonstrating the company is moving quickly.

“We do not underestimate the scale of the problem and appreciate there is a need for ‘root and branch’ change,” the former Liberal senator said.

ILGA said Crown was an unsuitable candidate for a casino licence in NSW. Picture: Jeremy Piper

“While we have already taken a number of important steps to improve our governance, compliance and culture, I recognise from the commissioner’s report we have much more to do.

“The commissioner has made findings of serious conduct, culture and compliance issues that clearly do not accord with our values. I accept criticism is warranted and reiterate our unreserved apologies for these shortcomings.”

In her findings, Commissioner Bergin did not point the finger of wrongdoing at Ms Coonan but said her “heavy reliance” on the advice of Mr Barton was unfortunately “misplaced”.

Concluding the casino behemoth was fraught with corporate “arrogance”, she recommended ILGA find Crown not suitable to hold a gaming licence in NSW.

But Mr Crawford said on Wednesday that ILGA would begin discussions with Crown, through enforceable undertakings, to ensure the company could have a gaming licence by April.

“Importantly, the commissioner’s report outlines a pathway towards suitability,” Ms Coonan said in the statement.

“Noting that ILGA will now consider and respond to the recommendations, I today commit to working in an orderly and co-ordinated manner with Mr Crawford.

“We owe it to the over 20,000 people who work at Crown’s properties to move with pace as we implement the necessary reforms.”

Originally published as Crown: Regulator says Ken Barton and Andrew Demetriou need to go as Helen Coonan commits to ‘root and branch’ change