Crown Sydney Granted Unconditional Casino License After Years of Scrutiny

Crown Sydney has been granted an unconditional casino license by the New South Wales Independent Casino Commission (NICC), ending a three-year period of intensive remediation efforts following damning findings of money laundering and links to organized crime. The decision marks a significant turnaround for the $2.2 billion casino, which was deemed unsuitable to hold a gaming license in 2021 after an inquiry exposed widespread misconduct.

Under the ownership of private equity firm Blackstone, Crown has invested over AU$200 million in transforming its business practices and implementing rigorous standards to prevent financial crime and ensure responsible gambling. The company has undergone a major restructuring of its board and senior management, as well as cultural changes focused on governance, compliance, and risk management.

NICC Chief Commissioner Philip Crawford praised Crown's "impressive" turnaround, stating that the casino is now a "vastly different business" compared to the one examined in the Bergin inquiry. "The commission is confident that organized crime groups would not infiltrate Crown's operations again," Crawford said, adding that Crown Sydney is now considered "the safest place to gamble in the state."

Why this matters: The granting of an unconditional license to Crown Sydney has significant implications for the Australian gaming industry and the state's economy. As one of NSW's largest taxpayers, Crown is expected to contribute an estimated $1 billion to state coffers over the next four years.

The decision also puts pressure on Crown's rival, The Star Entertainment Group, which is facing a second public inquiry into its suitability for a Sydney casino license. Former Star CEO Robbie Cooke recently defended his stand during his time at the helm of the struggling casino giant, facing questions about his interactions with the regulator and the company's response to the findings of a special manager.

In other financial news, major Australian asset manager First Sentier has returned $14 billion to investors as part of a business simplification strategy. The move comes as Chanticleer warns that ASX investors may face a "Dalio dilemma," referring to the challenges of following the investment strategies of billionaire Ray Dalio in the current market environment.

The granting of an unconditional casino license to Crown Sydney marks a significant milestone for the company and the Australian gaming industry. NICC Chief Commissioner Philip Crawford expressed confidence in Crown's transformation, stating that the casino has proven itself suitable to operate within the requirements of the law and its regulatory obligations. However, Crawford emphasized that Crown must continue to lift standards and maintain its cultural transformation to ensure ongoing compliance and suitability.

Key Takeaways

• Crown Sydney granted unconditional casino license after 3-year remediation.
• Blackstone invested AU$200M to transform Crown's business practices and governance.
• Crown Sydney expected to contribute $1B to NSW coffers over 4 years.
• Crown's rival, The Star Entertainment Group, faces second public inquiry.
• First Sentier returns $14B to investors as part of business simplification.