Melco Resorts in challenge to casino inquiry
Melco Resorts has legally challenged the NSW gaming regulator, saying the regulator is overstepping its powers in a casino inquiry.
Melco Resorts, the casino empire owned by Macau gaming tycoon Lawrence Ho, has launched an 11th-hour legal challenge to the NSW gaming regulator, claiming the regulator is attempting to overstep its powers in its upcoming NSW casino inquiry.
The highly unusual legal action — set down for an urgent hearing in the NSW Supreme Court on Thursday — comes less than three weeks before the Independent Liquor and Gaming Authority begins the first hearing of its no-holds-barred inquiry.
The inquiry was initially triggered by James Packer’s decision to sell 19.9 per cent of his Crown shares, potentially worth $1.75bn, to Melco Resorts.
At stake is Crown Resorts’ fitness to hold its high-rollers casino licence at Sydney’s Barangaroo, due to open its doors next year.
But in the court notice of motion filed by Melco Resorts, the casino company claims the inquiry’s legal team has misinterpreted its powers by insisting it can compel Melco to produce documents that breach the legal professional privilege between lawyers and their clients.
Melco argues that while the company has been co-operating with the inquiry, it should be entitled to refuse to produce certain documents, or parts of documents, on the ground of legal professional privilege.
Melco also disputes that section 17(1) of the Royal Commissions Act, which would give the inquiry the power to breach legal privilege, even comes “into effect for the purposes of the inquiry”.
The legal challenge by Melco flags the deep unease among senior operatives at both Melco Resorts and Australian billionaire Mr Packer’s Crown Resorts casino operations.
At the opening of the inquiry last month, counsel assisting Adam Bell SC alluded to some of the behind-the-scenes wrangling with Melco’s lawyers over the issue of its powers since at least September.
But Mr Bell told the inquiry that despite Melco’s “issues”, the inquiry would proceed on the basis that it had the power to compel witnesses to produce documents on demand and there would be no grounds, including legal privilege, on which they could refuse the order of the commissioner.
“A witness summonsed to appear before the inquiry or to produce documents to the inquiry is not excused from answering a question or producing documents on the ground of legal professional or other privilege or self-incrimination or a duty of secrecy or other restriction or disclosure or any other ground,” Mr Bell said.
The unprecedented gaming inquisition will be run as five separate hearings investigating the alleged “criminal infiltration” of Crown Resorts’ casino operations in Australia and abroad.
Both Mr Packer and Mr Ho have been ordered to appear as star witnesses at the inquiry, along with a rollcall of Mr Packer’s most trusted insiders.