NSW bars James Packer from interfering with Crown

The NSW gaming regulator has reached an agreement with James Packer preventing him from seeking representation on the board of Crown Resorts.

The NSW gambling regulator has reached an agreement with James Packer that formally bans him sitting on the board of or interfering with casino operator Crown Resorts, in which he owns a 37 per cent stake.

In a statement the NSW independent Liquor and Gaming Authority said it had successfully negotiated with Mr Packer’s holding company, Consolidated Press Holdings, to limit the extent it is able to influence Crown.

The agreed to undertakings include CPH pledging to not enter “into any information sharing arrangements with Crown” and to not initiate “any discussions with Crown, other than through public forums, about Crown’s businesses or operations.”

It will also not seek “any amendment to the Crown constitution which would affect the management or operation of Crown’s businesses.”

In addition, CPH has agreed to not seek “to have its executive or nominee appointed to Crown’s board, or requisition a meeting of Crown shareholders to seek the appointment of any person as a director of Crown, before October 2024”.

The term ensures Mr Packer will not be able to represent himself or nominate CPH representatives to defend his interests for more than three years, although The Australian understands the ban could be extended if deemed necessary by the regulator.

ILGA said the final form of the undertakings “will be recorded in an enforceablelegal document between CPH and the Authority.”

The agreement between CPH and ILGA represents a formalisation of promises CPH made after the Bergin inquiry into the $8bn gaming giant deemed the company not suitable to be the licensee of its $2.2bn Barangaroo casino in Sydney, barring the gaming floors from opening until it is satisfied Crown is a changed company.

A key factor behind inquiry commissioner Patricia Bergin’s findings of unsuitability was the influence projected on the company by its largest shareholder, James Packer’s Consolidated Press Holdings.

Ms Bergin formally recommended that controls be placed on CPH to prevent “remote manoeuvring” of the company by Mr Packer and his nominee directors, which included Michael Johnston, Guy Jalland and John Poynton, who have all since resigned.

A key controversy raised during the inquiry was a special shareholder protocol that allowed Mr Packer to receive confidential financial information about the company by request, even after he resigned as a director in 2018 for mental health reasons.

It was revealed that Crown Resorts CFO turned CEO Ken Barton briefed Mr Packer on financials almost daily, despite telling shareholders at the 2019 AGM that Mr Packer was not selectively briefed or receiving special treatment.

Mr Barton resigned as Crown CEO in February after his conduct after Ms Bergin savaged his conduct as “totally inexplicable” in her report.

Crown and CPH agreed to remove the protocol before Ms Bergin handed down her findings, as well as a services agreement that granted some CPH nominee directors executive responsibilities.

The agreement between CPH and ILGA noticeably does not include a requirement or timeline for Mr Packer and CPH to reduce its holding in Crown – despite Ms Bergin recommending that the NSW government not let a single shareholder own more than 10 per cent of a casino operator without regulatory approval.

It is understood that this is because Mr Packer has indicated he is open to selling his stake in the company: last week CPH retained Moelis as an advisor regarding a $8bn takeover offer from US private equity group Blackstone.

CPH was contacted for comment.