Australian casino operator Crown Resorts has been deemed suitable to operate its Melbourne casino and that it is in the public interest for the company to be handed back the casino license for Crown Melbourne.
At a press conference held in Melbourne early Tuesday morning, Fran Thorn, the Chairperson of the Victorian Gambling and Casino Control Commission (VGCCC), said the finding of suitability came after careful consideration of the findings of recent inquiries into Crown’s actions in Victoria, NSW and Perth, and of the Special Manager tasked with overseeing its remediation efforts over the past two years.
In particular, Thorn said the VGCCC was satisfied that Special Manager Stephen O’Bryan – who has overseen the casino’s remediation efforts for the past two years – has “assessed all relevant matters and that a significant and reliable body of evidence supports the Special Manager’s conclusions.”
As such, the VGCCC is “clearly satisfied that Crown Melbourne is suitable to operate the Melbourne casino and that it is in the public interest for the Melbourne casino license to remain in force.”
The Commission, she explained, had made its own independent determination on the suitability of Crown Melbourne on the basis of three key considerations. “The findings of the Special Manager are that Crown Melbourne has addressed the systemic failings identified by the Royal Commission,” Thorn said.
“Our own work with Crown Melbourne substantiated that the various suitability requirements have been met. As the Special Manager has reported during our investigations, we have observed a very different Crown emerging with a clear understanding of the privilege and obligations of holding the licence.
“Finally, Crown recognized that to reach its own aspirations to be more than suitable, to be excellent, it needed a comprehensive transformation plan referred to by the Special Manager to continue its reform efforts and against which it will be held accountable.”
Asked by media whether there were concerns Crown could attempt to “bully” the VGCCC – an accusation levied against the company’s former management during the Finkelstein Royal Commission – Thorn said the regulator “doesn’t listen to bullies, is not interested in them and won’t bow before them.
“There are very significant powers open to the Commission to go back at Crown if it does attempt to do any of those things,” she said. “We will be putting in place, for example, as part of our enhanced regulatory oversight an audit team that will substantiate any of the materials that Crown gives us about their progress on their reform.”
However, Thorn noted that Crown has worked “incredibly hard” on its remediation efforts following a comprehensive cleanout of its former Board of Directors and executive leadership team.
“Crown is under totally new management and ownership, so it’s not the same people who were there that allowed the sins of the past to happen,” she said.
“It is a new board, a new owner [Blackstone] and new senior management and they have been absolutely focused on remediating those problems.”
While Thorn said that O’Bryan will complete his stint as Special Manager in June, she explained the VGCCC will continue to enhance its oversight of the casino operator, including the establishment of a new specialist casino division. She also said that in the coming months the regulator will issue a statutory declaration outlining certain legal requirements governing Crown’s ongoing transformation.
“[Crown’s] transformation plan will be at the heart of our oversight, along with Crown’s legal and social obligations, and [it should provide] the next level standard for Crown Melbourne,” she said.
“In return for the privilege of an exclusive licence, Victorians have a right to expect that Crown Melbourne will never again prioritise profit ahead of the safety and wellbeing of its patrons and staff or over compliance with its legal and social obligations.
“Crown Melbourne must continue to seek to rebuild and earn public trust by demonstrating the good character, honesty and integrity that are necessary to remain a suitable casino operator. We put Crown on notice that this Commission will not hesitate to act if the privilege of holding the casino licence is again abused.”