Crown Resorts Receives Letter from IGLA regarding Sydney License.


The Independent Liquor and Gaming Authority (ILGA) is the gaming regulator in charge of operations in New South Wales. After the recent recommendation by the Bergin Report involving the Crown Resorts Sydney development, the ILGA has now officially deemed the operator unsuitable for a casino license in the state.

The report issued by Commissioner Patricia Bergin is 751 pages in length and came after a long inquiry into the suitability of Crown Resorts to hold a license in Sydney. The company faces allegations of money laundering at several casinos. The report also indicated that the company was in violation of its license in New South Wales due to selling a 19.99% stake in the company to Melco Resorts & Entertainment, a Macau-based casino operator.

Confirmation of Unsuitability

An announcement was reportedly made by Crown Resorts on Tuesday morning revealing that the ILGA has sent a letter to them, confirming the unsuitability for licensing. In the letter, it stated that the decision was made based on section 143 of the Casino Control Act 1992 (NSW).

The ILGA now considers Crown Sydney Gaming Pty Ltd, the local subsidiary of Crown Resorts, no longer a suitable option for the Restricted Gaming License. The company has been found in breach of its VIP Gaming Management Agreement, based on clause 14(a).

According to Crown Resorts, the ILGA has started the consultation process under the VIP GMA review and is allowing Crown Sydney Gaming to address the regulator to its present view. The ILGA has stated that the determination can change, and suitability provided once again if the company is willing to cooperate with the regulator.

Additional Results of the Inquiry

Once the verdict was published from the Bergin inquiry in early February, everything began to change for Crown Resorts. Leadership positions began to shift with three directors leaving soon after the announcement. Andrew Demetriou, Guy Jalland, and Michael Johnston all resigned.

Just yesterday, it was announced that Ken Barton is no longer the acting CEO or managing director of Crown Resorts. His position has been taken over by Helen Coonan while the Board of the company searches for a new CEO.

For Barton, he is in hot water as the inquiry found him falling short of CEO duties. The former CEO has been accused of misleading shareholders into thinking general information of the company was being shared to a company owned by James Packer, when the information was actually confidential. Barton has also been called out for not investigating money laundering charges when the inquiry first began into the company.




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