Crown sets up battle with NSW casino inquiry

The James Packer-backed Crown Resorts has now put itself on a collision course with the NSW gaming regulator.

The Crown Sydney casino and hotel is seen set to open in Barangaroo in December. Picture: Steven Saphore

The James Packer-backed Crown Resorts has put itself on a collision course with the NSW gaming regulator, telling a public inquiry it will not conclude its submissions rebutting damning allegations against the company before a crucial meeting next week to consider delaying the opening of its Sydney casino.

Crown’s counsel Neil Young told an inquiry into the company by the NSW Independent Liquor and Gaming Authority on Monday morning that Crown would not be able to commence its final submissions until next Tuesday, and that they would take the remainder of the week to present.

This means Crown will be in the midst of presenting its case defending its suitability to retain the Sydney licence when a special meeting of ILGA is convened on November 18 to consider whether the planned opening of Crown Sydney in mid-December should be delayed or curtailed.

NSW Minister for Customer Service Victor Dominello said on Friday that he was receiving regular updates from ILGA and was encouraged it had scheduled the special meeting to attempt to resolve the conditions of Crown Sydney’s opening in December.

Crown has come under heavy pressure to delay the opening and NSW Premier Gladys Berejiklian has said she would not rule out taking action to push it back after the ILGA inquiry last week heard submissions that the company should be found unsuitable to retain the licence due to multiple failures of governance, risk management and compliance.

Counsels assisting said these failures occurred in relation to Crown’s dealings with controversial junket operators that bring high roller gamblers to Australia, in the context of the arrests of its staff in China in 2016 and in its policing of money laundering at its casinos.

They have also argued Mr Packer, Crown’s biggest shareholder, should also be found unsuitable to be an associate of the Sydney licensee.

Mr Packer’s Consolidated Press Holdings, which holds a 36.7 per cent stake in Crown, will make its submissions to the inquiry this week.

On Monday morning Counsel Assisting Scott Aspinall argued Crown should also be found unsuitable to retain the Sydney licence because the inquiry was open to find money laundering occurred through two Crown shelf accounts, Southbank and Riverbank Investments.

He said suspicious transactions through the accounts showed Crown was either turning a blind eye, not reacting to or “not caring either way” about the risk of money laundering.

“None of these are consistent with suitability,’’ he said.

But Crown Counsel Neil Young challenged submissions presented to the inquiry on Friday that CCTV footage showing a freezer bag full of cash being unloaded in one of the venue’s high-roller rooms at Crown Melbourne was evidence of money laundering through the casino.

He said it only provided an “indicator” of money laundering.

Crown confirmed on Monday morning that its Melbourne casino would commence the operation of a limited number of electronic gaming machines and electronic table games from Thursday after receiving approvals from the Victorian government.

The operations will be restricted to ten designated VIP areas, each with a maximum capacity of ten patrons and there will be a Covid Marshall deployed for each area.

“We are pleased to be able to commence the process of welcoming back our employees and customers to Crown Melbourne,” chief executive Ken Barton told the ASX.

“We have been working for some time with the Victorian Government and health authorities to determine how we can safely re-open Crown Melbourne, and have developed extensive physical distancing and hygiene measures to allow reopening in a safe manner.”

Crown shares were trading 1.7 per cent higher at $8.96 on Monday.