Crown Perth Gains Critical Suitable Finding to Retain Casino License in Western Australia
Crown Resorts once again has full control of its Perth casino, following a critical suitable finding from Western Australia’s Gaming and Wagering Commission (GWC) to maintain a casino license. The state gaming agency recommended that the Burswood resort casino complex retain its gaming license after determining that the casino and its parent company, Crown Resorts, have undergone significant corporate governance upgrades since being deemed unsuitable three years ago.
Background of Regulatory Scrutiny
In 2022, Crown Perth was ruled unqualified to conduct casino games due to findings from similar inquiries in New South Wales and Victoria that said Crown Perth wasn’t fit to hold a casino license because it facilitated money laundering, allowed criminal junkets to operate at the property, and failed to address gambling harms.
The Impact of Blackstone’s Acquisition
US-based private equity giant Blackstone acquired Crown Resorts in 2022, paid hundreds of millions of dollars in fines, and invested heavily in upgrading the company’s governance and culture. This acquisition has likely played a crucial role in Crown Perth regaining its casino license.
The Remedial Efforts Satisfy GWC Conditions
Remedial efforts have satisfied the Gaming and Wagering Commission’s conditions to retain the gaming license, including enhanced employee screening, training models to promote ethical behaviors, and implementation of adequate anti-money laundering/counter-terrorism financing measures.
New Requirements for Crown Perth’s Operations
The GWC has introduced new requirements for Crown Perth’s operations, ensuring that the casino is fully compliant with regulatory standards. The agency will continue to monitor the property through its independent monitor, Paul Steel, to ensure lawful and responsible operations.
Perth Avoids Fines Unlike Other Regulated Casinos
Unlike Crown Sydney and Crown Melbourne, which were hit with almost half a billion dollars in fines for their regulatory failures, Crown Perth was not penalized by the Western Australia Royal Commission.
No Evidence of Direct Money Laundering Activity
The GWC stated that there was no evidence of direct money laundering activity at Crown Perth, unlike what was observed in Melbourne. While potential for money laundering and counter-terrorism financing was identified, there was no conclusive evidence to support these claims.
Conclusion
Crown Perth has regained its casino license after years of remedial efforts. The acquisition by Blackstone and significant upgrades to the company’s governance and culture have likely contributed to this outcome. While further oversight is required through the independent monitor, Crown Perth can now operate under full control, ensuring that players are protected from illicit activities.
Key Takeaways:
- Crown Resorts has regained full control of its Perth casino following a critical suitable finding from Western Australia’s Gaming and Wagering Commission (GWC).
- The GWC recommended that Crown Perth retain its gaming license after determining that the company had undergone significant corporate governance upgrades.
- Blackstone’s $6.6 billion acquisition of Crown Resorts has likely played a crucial role in regaining the casino license.
- Crown Perth has implemented enhanced employee screening, training models to promote ethical behaviors, and adequate anti-money laundering/counter-terrorism financing measures to satisfy GWC conditions.
- The Western Australia Royal Commission did not impose a financial penalty on Crown Perth, unlike other regulated casinos.