Join our daily newsletter At The Bell to receive exclusive market insights
- New South Wales’ gaming regulator has said that Crown Resorts (CWN) is no longer suitable to hold the license for its new Sydney casino
- The Independent Liquor and Gaming Authority also found Crown to have breached a clause of the state’s gaming regulations
- A consultation process under the VIP Gaming Management Agreement has now begun
- This is the latest in a string of blows since the release of a scathing report last week and follows the resignation of CEO Ken Barton and three directors
- Crown Resorts is down 0.8 per cent to $9.89 per share
New South Wales’ gaming regulator has said that Crown Resorts (CWN) is no longer suitable to hold the license for its new Sydney casino.
Australia’s largest gaming and entertainment group said this morning that it had been informed by the Independent Liquor and Gaming Authority (ILGA) of the decision, which also found the company to have breached a clause of the state’s gaming regulations.
A consultation process under the VIP Gaming Management Agreement has now begun, during which Crown will be given the opportunity to address the breaches in the hope of opening the $2.2 billion Barangaroo tower in the future.
This is the latest in a string of blows since the release of a scathing report by Commissioner Patricia Bergin, which was published after a year-long inquiry initiated by the ILGA.
Chief Executive Ken Barton said he would stand down from his role yesterday following the resignation of directors Guy Jalland, Michael Johnston and non-executive Andrew Demetriou.
Chairwoman Helen Coonan has pledged to put the company through ‘branch and root change’ but has so far not indicated what that will involve.
“We do not underestimate the scale of the problem and appreciate there is a need for ‘root and branch’ change. This change has commenced,” she said in a message last week.
“Importantly, the Commissioner’s report outlines a pathway towards suitability to give effect to theBarangaroo Restricted Gaming Licence.”
Crown Resorts is down 0.8 per cent to $9.89 per share at 10:39am AEDT.
