Australian crown plays a pandemic card pleading to hold a casino license

File Photo: Crown Casino Complex was taken in Melbourne on March 19, 2016.Reuters / Jason Reid // File Photo

August 3, 2021

Byron Kay

Sydney (Reuters) -Australian casino operator Crown Resorts Ltd warned on Tuesday that staff and shareholders would suffer if the main operating license was revoked due to a money laundering allegation.

Crown’s lawyer said the commissioner was appointed by the government to conclude that Crown was “not the right person to hold a casino license right now,” based on evidence of fraud at the company’s casino in Melbourne. I told the committee.

However, revoking the license or forcing it to sell or dissolve would have a negative impact on the tourism industry and the shareholders of Crown’s “Mom and Dad,” said lawyer Michael Boski.

“When so many people are already living under great uncertainty and difficulty as a result of a pandemic, no matter what they look at, so many people are in great turmoil and financial hardship. It can happen, “he said.

Crown, which is 37% owned by billionaire founder James Packer, has been involved in court battles and scandals since allegations of money laundering surfaced at a casino in Melbourne in 2019. The company has three casinos in Australia, but Melbourne’s assets are its profits.

A government-appointed lawyer in a Melbourne investigation said the Crown’s license should be revoked for failing to restore a culture blinded by money laundering and organized crime, and for acting packers as shadow directors. Insisted.

Another study of the A $ 2.2 billion ($ 1.6 billion) new resort in Sydney found the Crown unsuitable for a New South Wales license, the third in Perth, Western Australia. Another investigation into the casino is underway.

Borsky evokes the company’s position as Victoria’s largest single-site employer with 11,500 staff, and there is no guarantee that new owners will “seamlessly undertake a full workforce without confusion or prejudice.” Stated.

Shareholders said they “must be in pain” from the penalties associated with the Melbourne investigation. However, the company has 46,000 minor investors, and the cancellation of Crown’s license would “cause a huge financial loss.”

Earlier on Tuesday, Crown said the CEO of a casino in Melbourne would resign.

The Melbourne investigation continues.

($ 1 = 1.3578 Australian dollars)

(Report by Byron Kaye; edited by Stephen Coates)

Australian crown plays a pandemic card pleading to hold a casino license

Source link Australian crown plays a pandemic card pleading to hold a casino license

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