Operator News
Australia – Resignations tendered at Crown as Chairman commences ‘root and branch’ changes
By Lewis - 11 February 2021
Crown’s Chairman Helen Coonan has offered an unreserved apology and accepts the ‘warranted criticism’ following a New South Wales Independent Liquor and Gaming Authority inquiry into Crown Resorts.
The inquiry found that the Australian operator is not currently fit to run its A$2.2bn ($1.7bn) casino in Sydney’s Barangaroo district, but it could reform to become a ‘suitable’ holder for the licence.
Crown facilitated money laundering in its existing casinos in Melbourne and Perth and junket operators that brought high-rolling gamblers in from overseas that had links to organised crime.
“I welcome the Commissioner’s report of the NSW Independent Liquor and Gaming Authority Inquiry. I thank the Commissioner for the report and the ILGA Chairperson, Philip Crawford, for his constructive comments yesterday regarding the next steps,” said Helen Coonan.
“As the Chairman of a high-profile public company in Australia, I recognise community and regulatory expectations of the way we conduct our operations are rightly high.
“The Commissioner has made findings of serious conduct, culture and compliance issues that clearly do not accord with our values. I accept criticism is warranted and reiterate our unreserved apologies for these shortcomings.
“While we have already taken a number of important steps to improve our governance, compliance and culture, I recognise from the Commissioner’s report we have much more to do.
“We do not underestimate the scale of the problem and appreciate there is a need for ‘root and branch’ change. This change has commenced.
According to The Guardian, the chief executive of Crown Resorts, Ken Barton, and a non-executive director, Andrew Demetriou, are under increasing pressure to resign after action from gambling regulators in New South Wales and Victoria.
A third director, Harold Mitchell, is believed to be planning to resign soon after the Commission asked him to explain why he was suitable to remain on the board.
The pressure follows the resignation of two directors linked to major shareholder James Packer.
“Importantly, the Commissioner’s report outlines a pathway towards suitability to give effect to the Barangaroo Restricted Gaming Licence. Noting that ILGA will now consider and respond to the recommendations, I today commit to working in an orderly and coordinated manner with Mr Crawford.
“We owe it to the over 20,000 people who work at Crown’s properties to move with pace as we implement the necessary reforms.
“I would also like to acknowledge the contribution of Crown directors Guy Jalland and Michael Johnston after their resignation from the Board yesterday.
“On behalf of the Board, I thank Guy and Michael for their valuable service and wish them well with the future. Their decision will help accelerate our plans for Board renewal and demonstrates we are moving quickly in our response to the Commissioner’s report.”
