Crown Resorts Sydney Casino Launch Delayed Amid Money Laundering Probe

The New South Wales, Australia gaming regulator, known as the Independent Liquor & Gaming Authority (ILGA), has recommended that Crown Resorts postpone the launch of its new Sydney casino. The Barangaroo casino, with a price tag of $2.2 billion, was slated to open its doors on December 14th, but the regulatory body has directed Crown to push back this date.

This situation arises amidst a protracted investigation into Crown Resorts concerning accusations of money laundering activities at its casinos, potentially linked to organized crime. The corporation is also grappling with the repercussions of a 2016 decision by Chinese authorities that found Crown staff members culpable of illicitly promoting gambling.

Trading of Crown Resorts’ shares was temporarily suspended on Wednesday following the ILGA’s declaration that it would not issue the casino a license until the inquiry’s conclusions are made public. Retired Justice Patricia Bergin, presiding over the inquiry, is anticipated to present her report in February 2021.

ILGA head Philip Crawford emphasized that the evidence surfacing from the investigation is deeply troubling, and permitting the casino to commence operations before the inquiry’s completion would pose an unjustifiable hazard to the public good.

Early this week, Crown Resort made a significant stride in securing a permit for their Sydney casino. They severed relationships with all junket promoters, an action intended to satisfy the New South Wales Independent Liquor & Gaming Authority. This choice followed a legal argument where Crown’s attorney, James Young QC, contended that previous errors shouldn’t preclude them from managing the new gaming establishment.