Crown Resorts, the Australian Casino operator, is now facing a new kind of regulatory, which is probing in its operations for Crown Melbourne. In the meantime, it has also lost another member of its board of directors.
On Monday, Crown came up with its announcement regarding this crucial matter. It announced that the state government in Victoria has opted for the establishment of a royal commission for determining the suitability of the Crown. The suitability is for holding a gaming license for its Crown casino located in Melbourne. The Counsel of Queen Raymond Finkelstein now has been appointed for leading the commission. And the findings are selected and scheduled to be submitted by the time of August 1.
The venue of Melbourne was the site for most of the regulatory shenanigans, which are detailed in the report of Bergin. The summary for the Independent Liquor and the Gaming Authority of New South Wales’ investigation is focusing on the rampant regulatory for a variety of shortcomings at the casino of Crown in Melbourne and Perth.
The report came with a conclusion that the Crown was quite unsuitable for the operation of gaming at the new Crown Sydney venue. It was opened for the public in December without any active component for the casino. The fallout from this report has led to the resignation of several members from the board of Crown, including the CEO, Ken Barton. Crown came up with the announcement on Monday that yet another director Harold Mitchell has walked into the plank.
Mellisa Horne, the gaming minister of Victoria, said on Monday that Bergin’s report of findings “were so severe” that a royal commission was “the most appropriate action to protect Victorian interests.” Thus, Horne continued that the state “will not tolerate illegal behavior in our gaming industry” and would “take any necessary action” based on the findings of the commission.
Helen Coonan, the Crown Chair, improbably claimed that the company is welcoming the announcement of Victoria and it is going to cooperate with the commission fully. Coonan claims that it is going to provide “an opportunity to detail the reforms and changes to our business to deliver the highest standards of governance and compliance.”
The Crown is under siege on all fronts. Victoria previously came up with an announcement that it is going to accelerate its review for Crown Melbourne’s casino license. However, the Bergin report also convinced the Western Australia state government to open up their own royal commission for the suitability of Crown’s Perth in continuing its operations.
The Crown investors are apparently anticipating the intentions of Victoria. The share price of the company was trading down less than the mark of 1% to AU$10.20. The price has represented a significant improvement from the mark of $9.35 with a stock hit from the week before the Bergin report. It was made public from the $6.12 floor when the casinos of Crown were shut because of the pandemic in March 2020.