Victorian Crown Resorts review to probe deeper than hotel quarantine inquiry, says former premier Jeff Kennett

The man whose government was responsible for granting Crown’s first casino licence has backed an inquiry into the company’s Melbourne complex.

The Victorian review comes a day after the NSW Independent Liquor and Gaming Authority gave Crown the go-ahead to begin opening the non-gaming areas of its Barangaroo resort in Sydney from December 28. Picture: Getty Images

Former Victorian premier Jeff Kennett says the Andrews government has been “embarrassed” into holding its own inquiry into Crown Resorts’ suitability to hold a licence at its flagship Melbourne casino.

And Mr Kennett says the review into Crown will be a lot more forensic than the Victorian government’s inquiry into its botched hotel quarantine scheme that fuelled the state’s second COVID-19 wave and 800 deaths.

“I understand there needs to be an inquiry. I think the government is embarrassed that the NSW inquiry has found things to be untoward and that they are now responding,” Mr Kennett told The Australian.

“But there will be a totally different standard set in terms of reviewing Crown’s performance. There should be a high standard, and a forensic examination. But this government has two standards — one for judging themselves and one for judging anyone else in whatever occupation it may be or whoever the personalities may be.

“For instance, the inquiry into the hotel quarantine is sham and the people who obviously should have been called to give evidence have not been called, and the conduct has been appalling.”

The Victorian Commission for Gambling and Liquor Regulation has brought its review into Crown’s Southbank casino forward by three years, citing the explosive revelations around the NSW Bergin inquiry, including evidence of money laundering.

It is the seventh review into Crown’s Southbank licence, with the last concluding in 2018. The next review was not supposed to be until 2023, but the Andrews government intervened, in another blow to James Packer’s ­casino empire.

Analysts say that depending on the NSW inquiry findings, which are expected to be delivered in February, there is a risk that Crown may also lose its casino ­licences in Melbourne and Perth, which delivered the company more than half a billion dollars in earnings before interest, tax, depreciation and amortisation last year.

Former Premier Jeff Kennett. Picture: David Caird

Mr Kennett’s government was responsible for approving Crown’s sprawling Southbank entertainment complex in Melbourne and granting the company’s first casino licence in 1994.

In October Mr Kennett told The Australian the “wonderful assets” of the gaming company had been “let down” by its board of directors, the majority of whom he said should resign, including chair Helen Coonan. But on Thursday Mr Kennett was more measured in his comments, saying he hoped the inquiry would be conducted pro­fessionally and as quickly as possible.

“Crown and its operation is Victoria’s largest single site employer. It is an important part of our infrastructure, not just for gaming but for a whole lot of other aspects of life,” he said.

“I hope the inquiry can be conducted professionally and as quickly as possible so that if fault is found corrections can be made and the facility and the people it employs can get on with being employed and for those of us who utilise it for dining and other things can do so with confidence.

“But of course, that will depend on the inquiry and what it finds. It’s disappointing but every now and then in life you need a refresh, look at something, and I’m not opposed to it at all.”

In a short, six-sentence statement, Crown said it had “actively engaged with the VCGLR in relation to matters the subject” of the NSW inquiry, “including on Crown’s reform agenda”.

“Crown will continue to work co-operatively with the VCGLR to support this review,” the statement said.

The Victorian review comes a day after the NSW Independent Liquor and Gaming Authority gave Crown the go-ahead to begin opening the non-gaming areas of its Barangaroo resort in Sydney from December 28.

“The licence issued … has been issued on an interim basis, with an end date of April 30, 2021,” ILGA said in a statement.

“This will enable ILGA to consider any suitability concerns arising from the Bergin inquiry following the handing down of the report due early next year, before making a further decision regarding an extension to the licence.”

The Andrews government had been criticised for failing to order an investigation into Crown in the wake of the allegations in NSW. Under section 25 of the Casino Control Act 1991, the VCGLR is required to review the suitability of Crown’s casino licence in intervals that do not exceed five years.

Victorian Consumer Affairs, Gaming and Liquor Regulation Minister Melissa Horne said although the NSW inquiry would hand down its findings in February, there was “a need for immediate response in Victoria given concerning evidence presented throughout the course of the NSW investigation”.

“We’re making sure Crown Melbourne conducts its business in a transparent and appropriate manner,” Ms Horne said.

“This review is needed given the evidence we’ve seen come out of the NSW inquiry. It’s appropriate to bring forward the next ­review to ensure Crown Melbourne is suitable to hold a licence in Victoria.”

Underlining the seriousness of the investigation, Ms Horne said a dedicated commissioner would be appointed to the VCGLR. She said the sessional commissioner would be appointed soon, and would report its findings to the minister next year.

JPMorgan analyst Donald Carducci said it was inevitable the Victorian government would take action and that the court of public opinion was against Crown.

“NSW was going to run their process and everyone was looking at WA and Victoria to see what steps they would take. The Victorian government is very smart to get ahead of this,” Mr Carducci said. “The court of public opinion does not appear positive for Crown, and they’re likely to be impacted by this. The majority of their EBITDA comes from Melbourne.”

But Mr Carducci said he did not believe Crown would lose “any licence outright”, although it faced significant risks to its ongoing operations.

“If Crown opens up in NSW tomorrow and they generate gambling revenue in Barangaroo for a casino which is VIP-only, how levered to domestic/VIPs is Crown’s NSW licence, if VIPs are offshore and there are no international inbound flights?” he said.

“It could be argued Melbourne and Perth should take the same steps as NSW for suitability as a casino licence-holder.

“If you can’t operate a casino in NSW for the next few months, should Melbourne or Perth be much different?”