State Government calls royal commission into Crown Resorts

The state government has announced a royal commission into Crown’s suitability to hold a licence, but has refused to commit to implementing its recommendations.

Crown is facing a royal commission probe and could be stripped of its Victorian ­casino licence, as advertising magnate Harold Mitchell became the latest casualty in the scandal.

The state government on Monday announced a royal commission into Crown’s suitability to hold a licence, but refused to commit to implementing its recommendations.

The $7m inquiry into the state’s biggest single-site private-sector employer will be the third Crown has faced, after similar probes in NSW and Western Australia.

Gaming Minister Melissa Horne said it was too early to promise action. She defended the government’s decision to allow the casino to operate during the inquiry, saying it was important to protect jobs.

“We need to make sure we’re protecting jobs but also, too, we’re doing it in a way where a casino is operating in a suitable manner,” she said.

The State Government has called a royal commission into Crown. Picture: NCA NewsWire

The royal commission comes after a NSW inquiry, headed by former judge Patricia Bergin, found the casino giant was not fit to hold a licence in that state.

The damning inquiry revealed Crown had aided money laundering, including in Melbourne, and that junket operators who brought in highrolling gamblers were linked to organised crime.

Ms Horne said admissions by Crown during the Bergin inquiry were “of such concern to the Victorian government that we brought forward the seventh casino review”.

But the state opposition slammed the delay in announcing a Melbourne inquiry, saying the government was shamed into action.

Opposition Leader Michael O’Brien also hit out at the August 1 reporting deadline, saying more time was needed to conduct a thorough probe.

“We demanded an inquiry into Crown and our pressure has forced action,” he said.

“But Labor’s attempt to make this royal commission report in just five months, when the NSW equivalent had 18 months, isn’t right.”

“The Crown royal commission must have all the time required to establish the truth.”

James Packer and Andrew Demetriou. Picture: Aaron Francis/The Australian

Former Federal Court judge Raymond Finkelstein has been named commissioner, but the government is yet to finalise the terms of reference.

Victorian Greens leader Samantha Ratnam accused the state government of running a “protection racket for Crown for too long by turning a blind eye to years of allegations of money laundering and improper conduct”.

Advertising magnate Harold Mitchell resigned as a Crown Resorts director in the wake of the announcement.

He was the fourth to go after the resignations of Andrew Demetriou, Guy Jalland and Michael Johnston from the board. Former chief executive Ken Barton also quit.

James Packer’s private investment company, Consolidated Press Holdings, owns about 37 per cent of Crown ­Resorts.

Last week, WA announced an inquiry with the powers of a royal commission into the embattled casino operator, leaving Victoria isolated as the only state which licensed Crown that had not launched a quasi-judicial inquiry.

Melissa Horne. Picture: AAP

Independent federal MP Andrew Wilkie, who has exposed wrongdoing at Crown with whistleblowers, said the royal commission was “long overdue”.

He also sensationally claimed some politicians could be “guilty of criminal corruption” because of their “cosy” relationship with Crown.

Mr Wilkie said the inquiry should focus on the failures of the Victorian Commission for Gambling and Liquor Regulation, which he said “should never have been trusted” to decide whether Crown was fit to hold a casino licence.

Crown’s executive chairman, Helen Coonan, said the casino would fully co-operate with the royal commission.

“Crown welcomes the announcement from the Victorian government as it provides an opportunity to detail the reforms and changes to our business to deliver the highest standards of governance and compliance, and an organisational culture that meets community expectations,” she said.