Crown Resorts Faces Restrictions After NSW Inquiry Questions Casino Operations

Crown Resorts, the Australian casino operator recently acquired by private equity firm Blackstone, is facing restrictions on its operations after an inquiry in New South Wales (NSW) questioned the company's capability to properly run a casino. The NSW Independent Casino Commission found issues with Crown Resorts' practices, leading to limitations on the firm's business in the state.

The commission's decision comes after a nearly three-year intensive remediation process undertaken by Crown Sydney to address concerns raised in the inquiry. Crown has implemented 432 remediation measures at a cost of $200 million to keep its casino operational. The venue has been open for entertainment only since December 2020 when its gaming license was suspended.

In August 2022, Crown was granted a conditional license for members-only gaming facilities, contingent upon improving its operations and undergoing a cultural change within 24 months. Regulators will continue to monitor Crown's progress closely. The company's other casinos in Melbourne and Perth are also facing scrutiny, with the Melbourne property found to have engaged in "illegal, dishonest, unethical and exploitative" practices, although it was allowed to retain its license.

Why this matters: The restrictions on Crown Resorts highlight the increasing regulatory pressure on casino operators to maintain high standards of integrity and compliance. The outcome of this case could set a precedent for how regulators approach similar issues in the gaming industry.

Under the new ownership of Blackstone, which acquired Crown for $9 billion in 2022, the company has invested heavily in transforming its business and introducing rigorous standards, such as implementing cashless gaming on all electronic table games. NSW Independent Casino Commission Chief Commissioner Philip Crawford acknowledged Crown's efforts, stating that the company has "held up its end of the deal" and proven itself to be a "vastly different business" from the one examined in the initial inquiry. Crown's CEO, Mark McWhinnie, expressed satisfaction with the outcome, asserting that the Sydney casino is now "the safest place to gamble " in New South Wales.

Key Takeaways

• Crown Resorts faces restrictions in NSW due to issues in casino operations.
• Crown implemented 432 remediation measures at $200M to keep casino operational.
• Crown granted conditional license for members-only gaming in Sydney, subject to reforms.
• Crown's Melbourne casino found to have engaged in illegal, unethical practices.
• Outcome sets precedent for regulator approach to casino industry integrity issues.