R92 Gambling Activities

Odds of Crown buyout lengthen

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Original article by Lachlan Moffet Gray
The Australian – Page: 17 : 28-Oct-21

The Star Entertainment Group and private equity firm Blackstone are seen as potential bidders for Crown Resorts, given that both have previously made takeover plays for the casinos operator. The sale and leaseback of Crown’s casinos could be attractive to potential suitors. However, Larry Gandler of Credit Suisse says the appointment of a special manager to supervise Crown for two years will most likely rule out any sale and leaseback arrangement during this period.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, THE BLACKSTONE GROUP LP, CREDIT SUISSE (AUSTRALIA) LIMITED

Star loses $1b in value as probe widens

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Original article by Lucas Baird
The Australian Financial Review – Page: 13 & 20 : 12-Oct-21

Shares in Star Entertainment fell by 22.9 per cent on 11 October, following the publication of allegations that it allowed money laundering and infiltration by organised crime figures at its Gold Coast and Sydney casinos. NSW Independent Liquor and Gaming Authority chairman Philip Crawford said it would investigate the allegations, but that it would do so in private, claiming that the logistical and cost challenges were too great for the Authority to facilitate a public hearing. Shareholder and gambling-reform activist Stephen Mayne claims the allegations against Star show the need for a national casino regulator, a view shared by Independent federal MP Andrew Wilkie.

CORPORATES
THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, NEW SOUTH WALES. INDEPENDENT LIQUOR AND GAMING AUTHORITY

Watchdog ‘didn’t vet gamblers’

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Original article by Rebecca Le May
The Australian – Page: 15 : 8-Sep-21

Western Australia’s former chief casino officer Michael Connolly has appeared before the state’s royal commission into Crown Resorts. He has told the inquiry that the state government did not undertake background checks on foreign high-roller gamblers because it was assumed that they were being vetted by federal agencies such as Austrac and the Australian Border Force. A ‘Four Corners’ report in 2014 examined the potential links between Asian high-rollers and organised crime, including money-laundering.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, WESTERN AUSTRALIA. GAMING AND WAGERING COMMISSION, WESTERN AUSTRALIA. DEPT OF LOCAL GOVERNMENT, SPORT AND CULTURAL INDUSTRIES, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN BORDER FORCE

Blow to Packer as NSW commits to casino shake-up

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Original article by Lachlan Moffet Gray
The Australian – Page: 13 & 18 : 19-Aug-21

The New South Wales government has advised that it will implement all 19 recommendations made by the Bergin inquiry into Crown Resorts. Amongst other things, former judge Patricia Bergin recommended the creation of an independent casino regulator and a ban on individuals or businesses owning more than 10 per cent of a casino operator without regulatory approval. This is likely to require James Packer to reduce his 37 per cent stake in Crown, while it may also make it harder for him to sell his stake to potential buyers of the group.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN

Wager addict sues Crown, seeking $4.5m

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Original article by Hannah Wootton
The Australian Financial Review – Page: 3 : 11-Aug-21

Crown Resorts is already facing a number of class actions regarding its conduct over the last decade. However, Ahmed Hasna has become the first individual to pursue legal action against the casino operator. Hasna alleges that Crown took advantage of his gambling addiction and encouraged him to gamble on credit. He is seeking to recover about $4.5m that he gambled at Crown, and alleges that Crown’s treatment of him amounted to unconscionable conduct. Peter Lawrence, Crown’s head of VIP customer service, had told the Victorian royal commission that the group’s treatment of Mr Hasna was irresponsible.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN

Crown casino may sell cheaply

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Original article by Lachlan Moffet Gray
The Australian – Page: 17 : 6-Aug-21

Analysis by Credit Suisse suggests that the value of James Packer’s 37 per cent stake in Crown Resorts would fall by about $300m to just $1.86bn if the group were to lose the licence for its Melbourne casino. Credit Suisse also says a ruling that Crown is unsuitable to hold the Melbourne licence could force it to sell the casino complex for less than full value, given that it is located on leased government land. However, Credit Suisse does not expect Victoria’s royal commission into Crown Resorts to recommend cancelling the licence outright.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, CROWN MELBOURNE LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED

Crown pays Victoria $61m in unpaid taxes

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Original article by Elouise Fowler
The Australian Financial Review – Page: 8 : 28-Jul-21

Crown Resorts has advised that it will pay some $37m of unpaid gambling taxes to the Victorian government, plus $24m worth of penalty interest. However, counsel assisting the state’s royal commission into Crown Resorts recently told the inquiry that Crown’s total unpaid tax bill dating back to 2012 could potentially be around $480m, a figure that has been disputed by the casinos group. The unpaid tax bill relates to the rewards program associated with Crown’s electronic gaming machines.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN

Vic royal commission accuses Crown’s Coonan of undermining it

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Original article by Elouise Fowler, Hannah Wootton
The Australian Financial Review – Page: 1 & 12 : 9-Jul-21

Victoria’s royal commission into Crown Resorts has been told that the casino group’s executive chair Helen Coonan appeared to be seeking to undermine the inquiry. Adrian Finanzio, SC, the counsel assisting the inquiry, has read out a letter from Coonan to Victoria’s Gaming Minister Melissa Horne that was sent on 2 July, in which Coonan sought an urgent meeting with Horne and in which she spoke of "catastrophic consequences" if the royal commission were to make adverse findings against Crown’s Melbourne casino licence; Crown contributes 12 per cent of Victoria’s tax take. Royal commissioner Ray Finkelstein said the letter suggested to him that Crown was trying to interfere with the inquiry.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN

Crown slugged with $1m fine over junkets

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Original article by Lachlan Moffet Gray
The Australian – Page: 2 : 28-Apr-21

The Victorian Commission for Gambling & Liquor Regulation has ordered Crown Resorts to pay a fine of $1m over its dealings with so-called ‘junket’ operators that have links to organised crime groups. It is the maximum penalty under Victoria’s Casino Control Act. However, Crown will not face an outright ban on future dealings with junket operators. Instead, it will not be permitted to resume partnerships with such operators at its Melbourne casino until the regulator is satisfied that its processes have been improved.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN, VICTORIAN COMMISSION FOR GAMBLING AND LIQUOR REGULATION

Crown board to front WA royal commission

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Original article by Lachlan Moffet Gray
The Australian – Page: 15 : 21-Apr-21

Crown Resorts’ chair Helen Coonan and directors Jane Halton and Antonia Korsanos will appear before the Western Australian government’s royal commission into the company’s Perth casino. Just one former Crown director, John Horvath, has been granted leave to appear before the inquiry, although commissioner Neville Owen has indicated that others may have the opportunity to give evidence in the future. Many directors left Crown’s board in the wake of the Bergin inquiry in New South Wales, whose findings prompted the royal commissions in WA and Victoria.

CORPORATES
CROWN RESORTS LIMITED – ASX CWN