Crown Sydney learns of licence decision from NSW ICC after remediation

The ruling that Crown Sydney is fit to retain its casino licence after nearly three years of remediation is a huge vote of confidence in the gaming giant.

The newly opened casino floor at Crown Sydney in February. Picture: John Feder/The Australian

The NSW Independent Casino Commission has found Crown Sydney suitable to retain its full operating licence after nearly three years of remediation.

NICC chief commissioner Philip Crawford said the decision was made after careful consideration, noting the regulator had found the Sydney casino was suitable to hold its licence.

He said this was after the casino showed it could update and improve its operations and worked cooperatively with the regulator.

Announcing the decision, the NSW regulator said it would closely monitor the casino’s operations.

Crown was given a conditional licence to open its gaming floors at its $2bn hotel casino complex at Sydney’s Barangaroo in June 2022, under strict conditions following an inquiry by former NSW Supreme Court judge Patricia Bergin.

The inquiry found that Crown under its former management was unfit to hold a licence to operate in NSW.

Chief Commissioner of the NSW Independent Casino Commission, Philip Crawford. Picture: NCA NewsWire / Damian Shaw

Crown Resorts said the decision ended years of uncertainty for the company once owned by James Packer.

Crown Sydney chief executive, Mark McWhinnie, said the decision “recognises the genuine and sustainable changes we’ve made and our ongoing commitment to operating at the highest industry standards”.

“Since opening the Crown Sydney casino in August 2022, we have worked tirelessly to implement wholesale reform across our business, delivering 432 remediation activities to the NICC across key areas, including harm minimisation, financial crime, compliance, risk, and culture,” he said.

“Crown Sydney is the safest place to gamble in the state.”

The NSW decision follows the end of a two-year probation period for the company in Victoria which was announced in March this year.

The head of the Victorian gambling and casino commission Fran Thorn said it was in the public interest for Crown to keep its licence to operate its casino in Melbourne saying it had addressed systemic failings.

Crown Sydney CEO Mark McWhinnie has welcomed the decision. Picture: Max Mason-Hubers

The decision on Tuesday in NSW is a huge vote of confidence in the casino group now owned by US private equity giant Blackstone which took over the company in June 2022 in a deal which saw James Packer sell his 37 per cent stake in the group for an estimated $3.2bn.

Announcing the decision NICC chief commissioner Philip Crawford praised Crown Sydney’s management including Mr McWhinnie, and Crown Sydney chairman, and former Virgin Australia chief executive, John Borgetti, and declared that Sydney now had “benchmark world standards” of casino regulation.

In stark contrast to the gruelling process now facing rival casino operator, Star, which is facing a second inquiry commissioned by the NICC over its suitability to hold a casino licence, Mr Crawford praised the approach of Crown Resorts management in dealing with the regulator.

Mr Crawford also pointed out Crown’s international experience, through its owner Blackstone, had been helpful in shaping its attitude of dealing with regulators and imposing strict conditions on gambling in its casino.

He noted that Blackstone’s experience in operating casinos in other international jurisdictions had “allowed Crown Sydney to recruit people with extensive experience in managing and operating casinos”.

He said the NICC had developed a “strong relationship it has developed with Crown Sydney, Crown Resorts and Blackstone” which was “based on a desire to ensure Crown Sydney’s casinos operations are safe, responsible and compliant”.

Crown said the decision followed an investment of $200m in transforming its business, which had included” implementing extensive reforms across harm minimisation, financial crime, governance, compliance, and risk”.

Mr McWhinnie said Crown Sydney had introduced “rigorous standards to deter and detect money laundering as part of its ongoing focus on financial crime prevention”.

This included becoming the first in NSW to introduce cashless gaming on all electronic table games as well as a harm minimisation program which had “transformed Crown Sydney into the safest place to gamble in the state”.

The company said it would “continue to work constructively and collaboratively with the NICC to implement the requirements outlined as it relates to the casino licence, and ensure ongoing compliance with industry regulations and standards”.

Crown Resorts chief executive, Ciarán Carruthers said the Crown group had been “rebuilt from the inside out” since its ownership by Blackstone which brought in new executive leadership, management, and boards.

“We’ve spent the past two years pioneering a monumental transformation unlike anything seen before in corporate Australia,” he said.

“We remain committed to Crown’s ongoing cultural transformation, compliance, and ensuring that we are the safest gambling venue in Australia while providing a fun and entertaining environment for our guests.”

The company is still facing issues with its licence in Perth where it is going through a similar process in proving its suitability to hold a licence by the WA regulator.

Mr Carruthers said it was now “focussing on ongoing remediation work” in its Perth casino.

“We know holding a casino licence is a privilege and an obligation we take extremely seriously,” he said.

“We will continue to build trust with our communities and stay focused on our vision to become a beacon of excellence for integrated resorts.”

The decision by NSW Independent Casino Commission comes as the future of Crown’s rival, Star, is under a cloud with the company battling for its future as it faces a second inquiry into its suitability to hold a licence by Adam Bell SC.

Former senior executives from Star are due to give evidence at the hearing on Tuesday.

Crown’s Barangaroo casino has no licence to operate poker machines with a focus on catering to VIP guests.