As revealed recently, one of the biggest Australia-based entertainment and gaming groups Crown Resorts is under investigation by the New South Wales regulator. The gaming regulator for this area of the New South Wales eastern state has launched its investigation on the operator regarding Crown Resorts Limited violating its licensing conditions by deicing to sell almost a twenty percent stake of the business to Melco Resorts and Entertainment Limited.
According to one report released, the state’s Independent Liquor and Gaming Authority began its examination into the operator on the 29th of August. It was also reported that the regulator declared that its inquiry looks into whether the agreed financial decision constituted some kind of breach of the Crown Resorts Limited’s license or some other kind of regulatory violations or covenants.
Crown Resorts Limited Possibly Permitted to Retain Its Casino License
As previously mentioned, the Crowns Resorts Limited company is one of the biggest, most prominent Australia’s entertainment and gaming groups established back in 2007 on the 31st of May. The company is headquartered in Melbourne while it has offices in other cities as well. As of April 2018, Crown Resorts Limited has a market capitalization of around A$8.7 billion behind the two biggest Australia’s entertainment and gambling complexes, Crown Perth and Crown Melbourne.
The company was established when PBL or Publishing and Broadcasting Limited divested gaming assets to the Crown Resorts Limited. Later on, in December of 2007, Crown Resorts Limited purchased CCR for around $1.75 billion. This business agreement ended in 2009 when the company decided to purchase an almost twenty-five percent stake for around $370 million. The following year, the company attempted to enter the ever-growing Las Vegas market by purchasing a twenty percent stake in popular Fontainebleau Resorts.
However, this business deal led the company to more loss than gain which eventually meant several bankruptcy applications. This was actually one of several similar losses that occurred in several companies of this kind. In a sea of financial issues, the company is currently facing some legal issues as well. As it was reported by GGRAsia, the investigation by the New South Wales regulator will also consider whether the company should be permitted to retain its gaming license issued to its Crown Sydney entertainment facility.
Crown Sydney Under Concern
The company’s Crown Sydney facility is located on the harborside of the Barangaroo district. It is expected to start welcoming its first gets in 2021. When it comes to the company which owns the facility, it is already responsible for the popular Crown Perth facility located in Western Australia and Victoria-based Crown Melbourne.
When it comes to its currently under-construction facility in Sydney, it will the second casino in the city which is legal other than The Star. However, unlike its only legal rival, Crown Sydney is supposed to operate just VIP members restrictions. The facility includes seventy-five floors with a height of 890 ft or 271.3 meters. The hotel area will include three hundred and fifty luxurious rooms and suites.
However, the facility is facing serious issues before its opening date. The company which is behind the facility is controlled by rather a controversial billionaire James Packer who sold his shares in the company to Melco Resorts in June. Melco is also controlled by a controversial entrepreneur Lawrence Ho Yau Lung. One of the main concerns of the state’s regulator is whether Melco and its representatives are of such good repute regarding their integrity, honesty, and character.