- The Victorian Gambling and Casino Control Commission (VGCCC) is set to review the behaviour of Crown’s CEO.
- Investigations, including potential allowance of a minor on the gaming floor, are being reported by local media.
- Crown has engaged external counsel for an independent review.
- The company’s history includes facing regulatory challenges and a $6.3-billion takeover from Blackstone.
- Further changes include cessation of dealings with foreign travel agents and a substantial leadership change.
- A recent legal decision resulted in a large fine for Crown for breaches of anti-money laundering legislation.
CEO Investigation Under Review
The Victorian Gambling and Casino Control Commission (VGCCC) has announced a review of the outcome of Crown’s investigation into its CEO’s conduct, before determining any possible regulatory action. This was confirmed in a recent statement from the sector regulator for the state of Victoria.
Evidence of Minor on Gaming Floor
Reports from local media regarding the investigations suggest that a minor might have been allowed on the game floor. In response, VGCCC confirmed that they were already aware of this issue and have promptly started an investigation.
Crown’s Independent Review
Crown has also made a statement about the ongoing investigation, declaring that an external counsel has been hired to conduct an independent review, in compliance with Crown’s governance protocols. They will refrain from providing further comments until the review completion.
Recent Takeover & Regulatory Challenges
Last year saw private equity powerhouse Blackstone’s take over of Crown with a substantial $6.3-billion investment. Crown has also had to face numerous regulatory challenges, which also includes a royal commission in Victoria over money-laundering allegations.
Significant Changes in Crown’s Operations
Crown has implemented significant changes in its operation like the discontinuation of partnerships with foreign travel agents, also known as “junkets”, renowned for bringing in Chinese gamblers. The company has also revamped its leadership since 2021 to establish a stronger governance system.
Earlier this year, Crown had to pay a hefty breach in fines due to violation of anti-money laundering laws, which amounted to an approx of A$450 million, as decided by an Australian court.
($1 = 1.5279 Australian dollars)
This situation will likely have an impact on trading, particularly affecting assets related to Crown and the gambling sector. The outcome of investigations can further influence the existing regulatory landscape for this industry.