By Colin Kruger
A Barangaroo casino licence is the only remaining hurdle to US player Blackstone’s $8.9 billion takeover of Crown Resorts, and a multibillion dollar exit for James Packer, after Western Australian gambling regulators approved the new owner.
“As the prospective new owner of the Perth Casino, Blackstone will be required to meet a number of stringent conditions,” WA racing and gaming minister Tony Buti, said on Friday.
“These conditions align with a number of the recommendations stemming from the recent Perth Casino Royal Commission.”
Crown chairman Ziggy Switkowski and chief executive Steve McCann.Credit: Renee Nowytarger
It comes one day after the Victorian Gambling and Casino Control Commission (VGCCC) and the NSW Independent Gaming and Liquor Authority (ILGA) approved Blackstone’s proposed acquisition.
The company is awaiting the return of its casino licence for Barangaroo, which was suspended in late 2020 amid the ILGA’s damning public inquiry into its operations, which found Crown was unfit to operate.
The NSW report found Crown needed a management overhaul if it ever wanted to hold a casino licence, and the state’s gambling regulator should reconsider James Packer’s involvement.
The NSW government was expected to review and approve Crown’s licence earlier this week and allow the company to enter its final court hearing to finalise Blackstone’s takeover. A decision by the NSW government is expected before the end of the month. The licence is expected to have strict conditions and allow the gambling giant to operate for an initial two-year period.
The deal will see the gaming billionaire James Packer walk away with $3.3 billion after he sells his 37 per cent stake in Crown to Blackstone.
On Wednesday, Crown Resorts chief executive Steve McCann was optimistic about the casino’s near future. “We are very close,” he said of work with the regulator and NSW government to get its licence approved.
“But what, I think, is more important is that we can really assure the government, the regulators, but also the community in general, that this will be the best gambling environment - certainly in the country - and probably in the world.”
Crown investors have approved the scheme for the takeover. It is due to be approved in a Federal Court hearing next week. Crown will announce an indicative timetable for implementation of the Scheme.
Crown shares closed slightly higher at $13.05.
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