Crown green light delayed as ministers prevaricate

The NSW cabinet has pushed back a decision about whether to rubber stamp a deal allowing the casino giant to open its Sydney gaming floor for at least two weeks.

Crown Resorts will have to wait at least two more weeks for a deal struck with the gaming regulator in NSW to be approved by the state government after a cabinet vote on the proposal was delayed amid some disquiet.

The Australian last week revealed that the Independent Liquor and Gaming Authority had agreed to give the James Packer-backed company permission to finally open its Barangaroo gaming floor and sell itself to private equity giant Blackstone.

That agreement, The Australian reported, was for a set period – expected to be two years – and would come with stringent conditions after which the casino would be given a full license.

The agreement requires the approval of the NSW cabinet. It was set to discuss the deal at a meeting on Monday afternoon.

However, the cabinet did not come to a decision and the matter has been deferred until at least June 20, sources said.

Despite opening the resort at Barangaroo, Crown has been prevented from using the gaming floors after an ILGA-initiated inquiry concluded that Crown was not suitable to hold a license to operate a casino in Sydney.

The Bergin inquiry was established after Mr Packer’s Consolidated Press Holdings agreed in 2019 to sell a 19.9 per cent stake in the company to Melco Resorts, a company associated with Stanley Ho, a Hong Kong businessman with alleged links to criminal organisations.

ILGA, chaired by Philip Crawford, had previously said Crown could receive its licence in Sydney by the end of 2021. However, this time frame was extended – both the regulator and the company expected that gaming would be given the green light before June 30.

As The Australian’s Margin Call reports on Tuesday, several senior cabinet members remain concerned about granting the license to Crown.

Even if the company were to be given the green light in NSW, it would still require the approval of regulators in Victoria and Western Australia to be allowed to sell to Blackstone.

Crown’s shareholders – including Mr Packer – late in May overwhelmingly approved the $8.9bn sale of the company to Blackstone. Mr Packer stands to receive a $3.2bn windfall for his 37 per cent stake in the company, which has had a decades-long association with his family.