Crown Resorts chief quits in wake of damning money laundering report, fresh scandal erupts in WA

Crown Resorts’ chief executive has capitulated to calls for his scalp as a fresh scandal erupts in Perth.

Ken Barton has resigned as chief executive of Crown Resorts in the wake of damning findings from the NSW gambling regulator’s probe into money laundering at its Melbourne and Perth casinos.

The company confirmed the departure in a statement on Monday, saying Mr Barton would step down both as CEO and managing director immediately.

Helen Coonan has been elevated from chairman to executive chairman while Crown Resorts looks for someone to replace Mr Barton, who will provide assistance to her “to ensure a smooth handover”.

“Ken joined Crown more than a decade ago and has played an invaluable role with the business,” Ms Coonan said.

Mr Barton was excoriated in findings handed down last week from the NSW Independent Liquor and Gaming Authority inquiry into Crown’s suitability to retain the gambling licence for its new, yet-to-open $2.2bn casino at Barangaroo in Sydney.

Commissioner Patricia Bergin said it was “totally inexplicable” that Mr Barton failed to act when red flags were raised about bank accounts at the centre of money laundering allegations.

“What Crown should have done was to immediately investigate those accounts,” she said.

Crown Resorts chief executive Ken Barton has resigned.

Commissioner Bergin also said it was “appalling” that Mr Barton didn’t answer a shareholder’s “reasonable and pertinent” question at Crown’s 2019 annual general meeting about special treatment given on an almost daily basis to the company’s biggest shareholder James Packer.

She also took a dim view of his testimony at the inquiry.

“Mr Barton’s unwillingness in a regulatory setting to make obvious admissions unless pressed was most unimpressive,” Commissioner Bergin said.

“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.”

On Wednesday after the release of the bombshell report – which said Mr Packer’s influence on the company had had “disastrous” consequences – Mr Packer’s lieutenants Guy Jalland and Michael Johnston stepped down from the board.

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.

Philip Crawford said Crown would need to ‘blow itself up’ to meet NSW licensing requirements, with big changes to the board and senior management needing to occur. Picture: NCA NewsWire/David Swift

But it wasn’t enough, with NSW ILGA chair Philip Crawford saying Mr Barton and high-profile director Andrew Demetriou needed to resign if the company wanted to keep the Barangaroo licence.

Mr Demetriou – who Commissioner Bergin said had given an “unedifying” and “bizarre” performance on the witness stand – was gone by Friday, but Mr Barton clung on over the weekend.

“I am absolutely certain the business is now on the right path as it works to restore confidence in its operations,” Mr Barton said on Monday.

Meanwhile, the consequences of the findings on the Perth and Melbourne venues are yet to be determined.

The Victorian Commission for Gambling and Liquor Regulation has a range of investigations into Crown Melbourne underway, some of which predate the Bergin inquiry.

It has dramatically brought forward its five-yearly review of Crown Melbourne’s suitability to hold a casino licence, with the minister expected to receive the findings later this year, and its probe into Crown Resorts director Harold Mitchell is ongoing.

Harold Mitchell is still on the Victorian regulator’s radar. Picture: Stefan Postles

Mr Mitchell was found in 2019 to have breached his director’s duties while on the board of Tennis Australia in connection with a 2013 decision to award the domestic television broadcast rights for the Australian Open tennis tournament to the Seven Network.

Federal Court of Australia Justice Jonathan Beach handed Mr Mitchell a $90,000 penalty in November, prompting the VCGLR to swiftly demand he explain how he was a suitable person to be an associate of Crown Melbourne.

“We have received Mr Mitchell’s response and it’s currently being considered, with references made in the Bergin inquiry report to Mr Mitchell also being of relevance,” the regulator’s chief executive Catherine Myers said.

“A decision in this matter is anticipated before the end of the month.”

Among other VCGLR investigations into Crown Melbourne is a probe about the arrest of employees in China in 2016 as they worked to lure high-roller gamblers to the company’s Australian venues.

And in Western Australia, the state solicitor has been urgently assessing the Bergin report before handing his advice to the Gaming and Wagering Commission on Tuesday evening.

WA Premier Mark McGowan says he’s disappointed to hear the latest scandal involving Crown – this time involving senior Perth staff and WA’s chief casino regulator. Picture: Matt Jelonek/Getty Images

“That will hopefully provide a way forward,” WA Premier Mark McGowan told reporters on Monday.

“I would expect there will involve consultation with both the authorities in NSW and Victoria.

“If we need to take stern action, we will.”

Asked if he believed Crown Perth would retain its gaming licence, Mr McGowan said he could not predict what would happen, but the venue’s 5500 employees would be a central consideration.

“I suspect that will be the case with all of the states,” he said.

“I expect there will be action taken.

“We need to ensure that we stamp out illegality but we keep people’s jobs. That’s why a national, consistent approach, I think, is a good thing.”

The Labor leader also said he was disappointed by revelations WA’s chief casino regulator, Department of Local Government, Sport and Cultural Industries deputy director general Michael Connolly, had been chummy with Crown Perth’s legal and compliance team for years – including regular fishing trips.

Mr Connolly was stood aside on Friday.

The planned December opening of Crown Tower at Barangaroo – Sydney’s tallest building – was delayed pending the findings. Picture: Nikki Short

“I’d expect higher standards,” Mr McGowan said.

“It was inappropriate.

“Clearly, I’m disappointed that this has occurred and everyone would be.

“Obviously, the department will need to investigate and potentially take action.”

In the wake of the Bergin report, which listed a litany of corporate failures, Mr Packer told The Weekend Australian that it was important his private investment company Consolidated Press Holdings got “out of the way and has no involvement other than as a passive shareholder”.

“Of course I am sad about the separation, but it’s the right thing to do,” the reclusive billionaire told the masthead.