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Australia

Bergin Report Finds Crown Unsuitable to Hold Casino License in NSW

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Crown Resorts’ new $2.2 billion gambling mecca at Barangaroo may never open its doors after an independent inquiry found that the James Packer-backed group is unfit to hold a casino licence in NSW.

Former Supreme Court judge Patricia Bergin said in her 750-page final report released on Tuesday afternoon following an 18-month probe into the company that Crown needed a management overhaul if it ever wanted to hold a casino licence, and that the state’s gambling regulator should reconsider Mr Packer’s involvement.

Commissioner Bergin said an examination of a 2019 investigation by The Sydney Morning Herald, The Age and 60 Minutes into Crown that sparked the inquiry confirmed Crown had “facilitated money laundering” through its bank accounts; “disregarded the welfare” of its staff in China before 19 were arrested there in 2016, and went into business with high-roller junket tour groups linked to Triad and other organised crime groups.

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This made Crown unsuitable to hold a casino licence with its core problem being “poor corporate governance, deficient risk management structures and processes and a poor corporate culture.”

“One of the difficulties for Crown was its unjustified belief in itself and its unwillingness to entertain the prospect that there was any force in any of the [allegations raised in the media],” Commissioner Bergin wrote.

The findings will add pressure on governments in Victoria and WA to act on Crown’s casinos in Melbourne and Perth, where the behaviour that rendered it unsuitable occurred. The recommendations are not binding, and the NSW Independent Liquor & Gaming Authority will meet later this month to consider which, if any, it should implement.

Commissioner Bergin said it was obvious that Crown’s 36% shareholder James Packer exercised the “real power” at the company which had “disastrous consequences for the company.”

She said ILGA should consider his approval as a “close associate” of Crown in light of the explosive revelation that he sent a threatening email to a Melbourne businessman in 2015. Mr Packer said his behaviour was a result of his bipolar disorder.

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Commissioner Bergin recommended NSW put an ownership cap in place so any investor will need the NSW regulator’s approval to buy or own more than 10% of a casino operator, opening up the possibility of it ordering Mr Packer to sell down his stake in the company.

Commissioner Bergin said Crown’s reformation to become suitable would also require a “full and wide-ranging forensic audit of all of their accounts to ensure that the criminal elements that infiltrated [two bank accounts linked to Crown] have not infiltrated any other accounts.”

The report calls on NSW to establish the Independent Casino Commission, a “dedicated, stand-alone, specialist casino regulator with the necessary framework to meet the extant and emerging risks for gaming and casinos.”

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Australia

VGCCC Continues Crackdown on Underage Gambling

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Following the successful prosecution of the Peninsula Club in Dromana, Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt AM reiterated the regulator would continue to crack down on venues that allow children to enter poker machine areas.

The Magistrates’ Court of Victoria fined Victorian Amateur Turf Club, the venue owner, $7000 for 2 breaches of the Gambling Regulation Act 2003 (Vic) and ordered it to pay VGCCC costs of $3500. No conviction was recorded.

Ms Kimmitt said: “This is a warning to every venue. The onus is on you to ensure that children cannot and do not enter the gambling area or participate in any gambling activity, even if they’re with an adult.

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“Equally, staff must be adequately trained and present in the gambling area to supervise while machines are in use.

“Research tells us that people who begin gambling at a young age are at greater risk of developing gambling problems as an adult.

“The rules exist to protect children from exposure to, and harm from, gambling.”

On 10 June 2023, a child entered the gambling area of the Peninsula Club twice and was able to use the poker machines on both occasions. During the second visit to the area, while with adults, the child used a poker machine for about 5 minutes, until staff intervened.

Magistrate Ayres considered the venue’s self-reporting, its lack of prior convictions, early plea and remediations implemented to reduce the chance of future offending.

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The post VGCCC Continues Crackdown on Underage Gambling appeared first on European Gaming Industry News.

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Australia

The Star Forced into Trading Halt After Failing to Publish Financial Results

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The Star Entertainment Group has been forced into a trading halt, after failing to publish its half-year results on Friday.

According to a company release, the halt starts on Monday, unless the group is able to lodge its periodic report by end of trading. Otherwise, the suspension will remain in effect until the report is lodged.

This appears unlikely, as the group notes that it can’t publish its 1HFY25 Report ‘unless, and until, it has secured a refinancing commitment that would enable The Star to refinance all of the Group’s existing corporate debt, as well as to provide additional liquidity’.

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According to reports, the group’s Chief Executive Steve McCann is working to secure over AU$100 million ($62 million) in short-term funding, hoping to keep the company afloat until May.

McCann is reportedly trying to access the AU$60 million ($37.3 million) garnered from the sale of the group’s Sydney events center last month, which is being held in escrow.

The funds, however, will only be released after approval from the New South Wales government.

If released, this would help McCann negotiate with lenders for the additional funding he hopes can prop up the group.

The Star has been warning for months that it has run out of cash, indicating in January that at the end of 2024 it held just AU$78 million ($48.5 million) in available cash.

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Despite owing lenders some AU$430 million ($267 million), The Star has not accepted offers both from its joint venture partners in Queen’s Wharf Brisbane (Chow Tai Fook and Far East Consortium) and by funds associated with Oaktree Capital Management.

Blackstone has indicated that it could be interested in an acquisition of The Star upon its entry into voluntary administration.

The post The Star Forced into Trading Halt After Failing to Publish Financial Results appeared first on European Gaming Industry News.

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Australia

VGCCC Concludes Underage Gambling Investigation

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“Nothing can make up for the harm a Melbourne family experienced as a result of the failure by multiple operators to prevent a young teen from gambling between May 2022 and October 2023,” Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt AM said.

Her comment followed the conclusion of VGCCC’s most comprehensive action to date for underage gambling – more than 2000 hours of investigations, 14 prosecutions against 10 entities, 98 charges and fines totalling half-a-million dollars.

The VGCCC investigation was prompted by concerns reported by the mother of the then 17-year-old, whose neurodiversity, in addition to his age, put him at high risk of gambling harm.

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Ms Kimmitt said: “I can only imagine how difficult it was for the mother to come to us and I commend her for doing so. I hope the outcomes and conclusion of these proceedings bring her some comfort, following the significant trauma she and her family have gone through.

“When industry is not diligent about complying with its legal and social obligations, the consequences for everyday Victorians can be serious and long lasting, which is why the VGCCC is determined to hold operators to account.”

The final case was heard before the Magistrates’ Court of Victoria on Thursday 13 February. Correct Bet Pty Ltd, the operator of the Coburg TAB outlet, pleaded guilty to two charges and was fined $3000 without conviction and ordered to pay VGCCC costs of $5500.

Magistrate Hodgson considered that Correct Bet had no prior convictions in 14 years of operation across multiple venues and had implemented additional measures, including staff training, mobile phone policy changes, and regular CCTV monitoring.

Separately, on Friday 7 February, Supreme Edinburgh Pty Ltd, trading as the Duke of Edinburgh in Brunswick, pleaded guilty in the Magistrates’ Court to three counts of breaching the Gambling Regulation Act 2003. The operator was fined $2500 and ordered to pay VGCCC costs of $4950.

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Ms Kimmitt said: “It is a venue’s responsibility to ensure minors do not access a designated gambling area, let alone gamble, no matter how determined or convincing a child might be.

“We welcome the outcome of these court hearings, which bring to a close all prosecutions involving this family. Unfortunately, the family’s recovery from this experience is likely to take a lot longer and leave a painful scar.”

The post VGCCC Concludes Underage Gambling Investigation appeared first on European Gaming Industry News.

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