‘Stern’ action flagged in WA’s Crown crisis

WA regulators are under pressure to act after it emerged that the chief casino officer was a close friend of two of Crown’s legal and compliance team.

A crisis meeting to consider the future of Crown in Western Australia has been brought forward, with Premier Mark McGowan flagging “stern” action could be taken against the casino ­operation.

The state’s Gaming and Wagering Commission was originally scheduled to meet on February 23 but that meeting will be brought forward to Tuesday following the receipt of advice from the State Solicitor’s Office.

The state’s regulators are under growing pressure to act after it emerged that WA’s chief casino officer, Department of Local Government, Sport and Cultural Industries deputy director general Michael Connolly, was a close friend of two members of Crown’s legal and compliance team.

Mr Connolly stood aside from the role on Friday after a media query from Perth radio station 6PR into the friendships.

He had previously declared those friendships — which included several fishing trips on Mr Connolly’s boat — to department director-general Duncan Ord and his predecessor, Barry Sargeant, on multiple occasions, but the department decided late last week after the media query that Mr Connolly should stand aside.

Mr McGowan said he was “disappointed” about the relationship and the department’s prior approvals.

“I learned about it very recently and I would ­expect higher standards,” he said on Monday.

“Obviously the events that just came to light in relation to this employee, I’m disappointed as well and I expect there will be proper action taken.”

Mr McGowan wants to see the three states with Crown casinos — Victoria, NSW and WA — agree to a joint approach in light of the findings of last week’s Bergin report.

The NSW inquiry detailed alleged incidents of money laundering, including within the Perth casino, and concluded that Crown would not be fit to hold a gaming licence in the state.

The bombshell report has triggered a wave of director resig­nations at Crown, with Helen Coonan formally becoming executive chairman on Monday after the resignation of chief executive Ken Barton.

Mr McGowan said WA authorities were already in contact with their interstate counterparts.

“I understand our government agencies have been in touch with both the Victorian government and NSW government,” he said.

“If we can, we will work in harmony on the sorts of arrangements that need to take place to ensure the highest possible standards and that we stamp out any unlawfulness or illegality.”

Mr McGowan has been clear that he wants the casino — which is one of the city’s single biggest employers — to continue operating.

“No unlawfulness will be tolerated, no illegality will be tolerated, but we need to move in a direction that ensures people still have jobs,” he said.

“There are 5500 people that work there … We need to keep an operating concern that keeps people employed, and I suspect that’s the approach of all the states.”