James Packer in hands-off Crown Resorts agreement with NSW casino regulator

James Packer has agreed to keep his mitts off Crown Resorts after previously exerting ‘disastrous’ influence over the casino giant.

The NSW gambling regulator has made James Packer agree to various undertakings aimed at blocking his influence over Crown Resorts as its biggest shareholder in the wake of damning inquiry findings.

Last year’s probe concluded that evidence showed Crown had turned a blind eye to money laundering at its Perth and Melbourne casinos and partnered with Asian junket tour operators with known links to organised crime.

Commissioner Patricia Bergin also found the reclusive billionaire’s enduring influence over Crown – despite quitting the board in 2018 – had had “disastrous consequences for the company”.

She heard he had been the driving force behind the push to secure more of the Asian high-roller market at the centre of the scandal, with one of the most dire consequences of that aggressive marketing being the 2016 arrest of Crown staffers in China, where gambling on the mainland is illegal.

He also got special treatment, with briefings on an almost daily basis under a “controlling shareholder protocol”, which was torn up after the evidence emerged.

James Packer (centre) with Andrew Demetriou (right), who stepped down as a director in the wake of the scandal, and executive vice-president strategy and development Todd Nisbet (left) in Melbourne in January last year. Picture: Aaron Francis/The Australian

Mr Packer recently told The Australian he would sadly step back to being a passive investor and is also reportedly open to selling his 36 per cent stake, held by his investment company Consolidated Press Holdings, under a takeover offer by US private equity giant Blackstone.

But the NSW Independent Liquor & Gaming Authority has still sought to formally block any influence he may still have over Crown, announcing on Friday that Mr Packer had agreed to multiple undertakings that were expected to be recorded in an enforceable legal document.

They include CPH not entering into any information sharing arrangements with Crown, not initiating any discussions with the gaming giant – other than through public forums – about its businesses or operations, and not seeking to have a CPH executive or nominee appointed to Crown’s board.

Mr Packer’s CPH lieutenants exited the board along with other key executives, including chief executive Ken Barton, in the wake of the controversy.

Victoria began its royal commission into Crown Resorts last month, while WA’s kicked off this week. Picture: NCA NewsWire/David Crosling

ILGA ultimately found Crown was not suitable to hold a gaming licence for its new $2.2bn Barangaroo casino in Sydney, and the Perth and Melbourne licences are also at risk, with the company facing separate royal commissions in Victoria and Western Australia.

Crown is striving to redeem itself through “board renewal”, announcing on Monday that it had – aptly – appointed to its board an executive known as “Mr Fix-it”, Bruce Carter, who was previously deputy chair of rival casino operator SkyCity Entertainment Group.

WA Premier Mark McGowan has been at pains to stress keeping Crown Perth’s 5500 staff employed is of paramount importance.

There’s no gaming going on at Crown in Barangaroo, but luxury apartments are being sold. Picture: Nikki Short

Crown has not yet made a recommendation to its shareholders regarding the $11.85 per share offer from Blackstone, which already has a 9.99 per cent stake in the company.

Blackstone has made the offer conditional on the WA and Victoria gaming licences not being cancelled, suspended or threatened or the NSW licence not being granted or threatened of being withheld by the time of the second court hearing for the takeover scheme of arrangement meeting.

Findings from the Victorian royal commission are expected by August 1, while the WA royal commission will hand down an interim report by June 30, with the final report following by November 14.

“It is the expectation of Blackstone that it will receive probity approval to acquire 100 per cent of Crown from each of the state gaming regulators by 3Q 2021,” Crown said on Tuesday.

Crown shares have recently been trading above the offer price, up two cents at $11.92 in afternoon trade on Friday.