- ILGA delivered its findings in a 750-page report
- $2.2 billion tower has already been built and is fitted
- Two directors have resigned less than 24 hours after the report was published
The NSW’s Independent Liquor and Gaming Authority (ILGA) delivered its findings in a 750-report delivered yesterday.
The findings deemed Crown unsuitable to hold the licence for what would have been Sydney’s second casino after Star City and nationally the 14th casino in Australia.
Crown currently has two Casinos located in Melbourne and Perth respectively.
It is a massive blow for the ASX-listed gaming and entertainment group considering the $2.2 Barangaroo tower has been built and decked out.
Recommendations include ensuring all casinos prevent money laundering and from dealing with Junket operators – a term used for operators who lure wealthy gamblers by using methods such as luxury travel, accommodation and other personalised promotions.
In an interview with Nine Radio this morning, New South Wales Premier, Gladys Berejiklian, described the report as “direct and frank” but remarked the Authority has high standards for all licensees.
“We as a Government, through our Independent Liquor and Gaming Authority, will want assurance that anyone who wants to have a licence in NSW conducts themselves with the utmost integrity” she told the radio program.
In a statement, Crown said it will work with the ILGA concerning the findings of the report.
Today saw two directors resign – Guy Jalland and Michael Johnston – along with non-executive director John Poynton having his consultancy arrangement with Consolidated Press Holdings terminated. This means he is no longer a nominee of CPH on Crown’s Board./ This means there are no more CPH-appointed nominees on Crown’s Board.
All this occurred in under 24 hours after the report was made available.
Unsurprisingly, Crown shares plummeted this morning after a trading halt was requested yesterday.
This morning shares opened at 9 per cent lower although this recovered to only a 3.35 per cent decline by close of trade today.
With pressure looming on the Victorian and Western Australia State Governments to review their relationships with Crown, it is likely there is more to come.