In a surprising turn of events, Crown Resorts, the embattled Australian casino operator owned by private equity giant Blackstone, has been granted the opportunity to retain its lucrative Sydney casino licence, the New South Wales gambling regulator announced today.
The decision comes after months of intense scrutiny over Crown’s suitability to hold a casino licence, following a damning report by the state’s Independent Liquor and Gaming Authority (ILGA) last year which uncovered widespread governance failures and links to criminal activity within the company.
Despite facing mounting pressure from government officials, regulators, and the public, ILGA ultimately decided that Crown had made significant progress in addressing the concerns raised in the report, and that the company’s proposed remediation measures were sufficient to justify allowing them to continue operating their flagship Barangaroo casino in Sydney.
In a statement released following the decision, ILGA Chair Philip Crawford acknowledged the efforts made by Crown to improve its corporate governance practices and compliance procedures, noting that the company had taken significant steps towards addressing the issues identified in the report.
“Crown Resorts has demonstrated a commitment to implementing the necessary changes to ensure the safety and integrity of its operations, and we believe that granting them the opportunity to continue holding their Sydney casino licence is in the best interest of the community,” Crawford said.
The news will come as a relief to Blackstone, which acquired Crown Resorts in a $6.2 billion deal earlier this year, with the intention of turning around the troubled company and restoring its tarnished reputation.
In response to the announcement, a spokesperson for Blackstone expressed gratitude to ILGA for their decision and reiterated the firm’s commitment to working closely with regulators to ensure compliance with all legal and regulatory requirements.
The decision to allow Crown Resorts to keep its Sydney casino licence comes as a surprise to many, given the severity of the allegations made against the company in the ILGA report. However, it also serves as a reminder that, with the right measures in place, even the most beleaguered of companies can have a second chance at redemption.
