The Crown Resorts Limited casino operator is under investigation by the major gaming regulator responsible for New South Wales, Australia. As revealed by several local news outlets, the gaming regulator for this area has already launched the very first out of five public hearings regarding allegations that Crowns Resorts Limited might have utilized unethical agents to attract Chinese visitors to its facilities.

Crown Resorts Limited which was established back in 2007 is one of the biggest entertainment and gaming groups in Australia. As estimated in 2018, the company has a massive market capitalization of over A$8.7 billion. The company owns and manages two leading entertainment and gambling complexes in Australia including its Crown Perth and Crown Melbourne.

The company was founded in 2007 when Publishing and Broadcasting Limited decided to divest its assets to the Crown Limited company. At the time, Publishing and Broadcasting Limited was renamed to what we know today as Consolidated Media Holdings. In more recent years, Crown Resorts Limited broke ground for its Crown Sydney facility which should be opened this year.

The Investigation by the New South Wales Gaming Regulator

According to one report by the Bloomberg news outlet from several days ago, the investigation conducted by the New South Wales Independent Liquor and Gaming Authority is primarily looking into allegations that the Melbourne-based company had used unethical individuals with connections to human trafficking including money launderers and drug gang members in order to entice international patrons including Chinese players to visit its facilities in the first place its Crown Perth and Crown Melbourne Entertainment Complex.

According to the same news outlet, the investigation regarding these allegations against Crown Resorts Limited is led by Patricia Bergin who is a former Supreme Court Judge for New South Wales. It is also reported that the investigation could result in the company losing its operational license which was granted for its Crown Sydney venue. This is a $1.5 billion-worth property located in Barangaroo in central Sydney and it is expected to start welcoming guests later this year following fifty months of construction work.

In the same report, the Bloomberg news outlet also shared that the inquiry could also ask to hear a statement from the biggest investor in the company James Packer who is a billionaire businessman. The inquiry could also ask to hear statements from the Chief Executive Officer and Chairman for Asia-based casino behemoth Melco Resorts and Entertainment Limited. It was also reported that Lawrence Ho Yau Lung already explained that his company had intended to acquire 20% shareholding in Crown Resorts Limited, but it decided to pull out from this business arrangement and leave with a 9.9% stake.

Crown Resorts Limited Working on Improving Its Corporate Governance

The Bloomberg news service also shared that the investigation will also look into Crown Resorts Limited connection with Mr. Ho and his father Stanley Ho Hung Sun. Stanley Ho Huan Sun has been prohibited from making investments in Australian casinos due to allegations that he has built his casino empire through connections with groups dealing with organized crime. The elder ho has always denied these allegations.

The same news outlet also reported that the investigation conducted by the New South Wales gambling regulator may also decide to review gambling legislation and regulations in the state as well as further check the vulnerability of local gambling venues to the growing concerns related to money laundering. To prepare for the first hearing, Crown Resorts Limited has tasked Helen Coonan who works for the company as a Non-Executive Chairman to improve the company’s corporate governance.

Crown Resorts Limited is doubtlessly one of Australia’s biggest entertainment and gaming groups which back in April of last year enjoyed a massive market capitalization of more than A$8.7 billion. This comes as no surprise because Crown Resorts Limited owns and manages two of Australia-based leading entertainment and gambling complexes including Crown Perth and Crown Melbourne.

The company emerged on the scene in 2007 when PBL or Publishing and Broadcasting Limited all of its gaming assets to Crown Resorts Limited. Back in December that same year, Crown Resorts Limited purchased CCR for around $1.75 billion. While this business deal was ended two years later in March, the company went on buying an almost 25 percent stake in the firm for around $370 million in addition to paying around $50 million for terminating the previous contract.

Back in 2008, the company attempted to enter the ever-growing Las Vegas-based market by purchasing a 19 percent stake in prominent Fontainebleau Resorts, but this business move resulted in a massive loss the next year. In the following years, the company invested in Crown Sri Lanka as well as partnered with Betfair Australia and acquired several smaller businesses. Despite being on the right route, some of the company’s major shareholders expressed their concerns about the company’s annual meeting which was held last week.

Voting Against the Company’s Yearly Remuneration

As reported by The Guardian news outlet, the company’s annual meeting saw several of its major shareholders voting against the company’s yearly remuneration report. It was also reported that several of the major company’s investors questioned the firm’s senior executive about recent scandals. As reported by The Guardian, this annual meeting saw around 17% of the company’s investors voting against its yearly remuneration even though this was mainly supported by James Packer who owns around 37% of the company.

As dictated by local laws, firms including Crown Resorts Limited must change their boards in the case of their major shareholders turning down a yearly remuneration two times by votes of 25% or more. The same newspaper which shared this news also claims that the Crown Resorts Limited’s shareholders used the annual meeting to question the company’s board about recent allegations of illegal visas for foreign customers in addition to other scandals related to organized crime.

The company’s investors also interrogated the firm’s leadership about the recently proposed business deal which would see James Pecker selling almost 20% of his stake in the company to Asian casino giant Melco Resorts and Entertainment Limited. In addition to these issues, the company is also facing another problem as Crown Melbourne workers had planned a two-hour strike for Friday.

The Crown Melbourne Workers Planning to Walk Off the Job

As reported several days ago, workers at the Crown Melbourne facility are set to walk off their job positions for at least two hours on Friday concerning the company’s new business deal. According to one report by The Sydney Morning Herald news outlet, the company’s employees who are members of the United Voice group including its security guards, hotel workers, dealers as well as bar and restaurant staff at Crown Melbourne will walk off their job for two hours.

It was also reported that the workers may extend their two-hour strike to last up to twenty-four hours. This move represented the very first strike at the venue in sixteen years. Workers will decide on Friday whether to continue with their strike campaign or to go back to work. The United Voice group including workers of Crown Melbourne have been involved in a series of negotiations with the operator for almost six months in order to obtain an EBA or enterprise bargaining agreement. However, the Sydney-based company has not provided any substantive offer, not yet which is one of the reasons for the strike.

As it was reported recently, a couple of Australian casino junkets are under government investigation. One of the local newspapers has stated that the country’s law enforcement officials have launched an investigation into whether a couple of overseas casino junket operators may be promoting Chinese organized crime by using the country’s casinos for money laundering.

According to one report released several days ago by GGRAsia citing reports from The Sydney Morning Herald local newspaper, the latest special investigation by the ACIC or Australian Criminal Intelligence Commission was mainly initiated due to allegations that one land-based casino operator, the popular Crown Resorts Limited may be helping with facilitation of illicit activities with their high-stakes gambling lounges within its casinos.

Crown Resorts Limited Facing Obstacles Since 2007

Crown Resorts Limited is one of the country’s biggest, leading entertainment and gaming groups which had a massive market capitalization going over A$8.7 billion as reported in April last year. The company is located in Southbank in Melbourne and it both operates and owns two of the country’s biggest entertainment and gambling complexes including Crown Perth and Crown Melbourne.

The company was founded in 2007 when PBL or Publishing and Broadcasting limited fully divested all of its assets to Crown Limited. Later on, PBL was renamed to Consolidation Media Holdings. Back in December of 2007, Crown Limited agreed to purchase CCR for around $1.75 billion. Only two years later, this business deal was ended even though Crown Limited insisted on purchasing a smaller stake in the company.

One year later, Crown Limited entered the biggest Las Vegas entertainment and gambling market by purchasing almost a 20 percent stake in popular Fontainebleau Resorts for around $250 million. This business deal resulted in the company facing financial issues which led to several bankruptcy applications. Even though the company was on the edge of bankruptcy in 2008, it has managed to continue its operations and even expand further.

In 2013, the company’s then biggest shareholder and chairman invested in Crown located in Sri Lanka. One year later, the company partnered with Betfair. That same year in December, the company also partnered with another leading online gambling operator BetEasy. However, as of recently, the company is facing serious charges as well as further probes by the country’s regulators.

Alleged Organized Crime Charges

As it was reported recently, Crown Limited has been the center of a messy web or denials, allegations, and government inquiries and the biggest so fat is alleged reports which link the company to organized crime. The allegations are based on thousands of accidentally leaked internal company’s documents which suggest that the casino was not performing all necessary activities to ensure the government that there are no links between organized crime and junket casino operators.

It is also reported that Crown Limited allowed money laundering as well as exploited the country’s visa system weaknesses by allowing Chinese bettors who invest high stakes without any of vetting. The company has denied all of these allegations. It was also reported that the company’s board is extremely concerned for its stakeholders, shareholders and its staff. What is even more, the Crown Limited official press release also accuses others of attempting to destroy its good reputation. Another company which may be looked at by the government is Suncity Group as it offers VIP lounges at the Crown Resorts Limited and Crown Melbourne.