Western Australia is the missing link in the planned takeover of US private equity giant Blackstone for $ 8.9 billion from the Crown Resorts gaming empire, including the Perth casino.
Key points:
- Planned laws will see Crown Perth overseen by an independent monitor
- Laws are unlikely to enter parliament until after the winter break
- Blackstone’s takeover could happen before the reforms
On Thursday, Crown announced that New South Wales and Victoria gambling regulators had given the green light to the acquisition.
But surveillance of the WA casino, the Gaming and Betting Commission (GWC) and the Minister of Racing and Gaming have not yet given Blackstone approval, which is crucial for the deal to continue.
The WA government is also keeping its letters close to its chest on how it plans to clean up money laundering, criminal infiltration and gambling problems in Crown Perth, three months after it was handed a report from the Royal Commission with 59 recommendations on how to do it.
It has yet to outline its full response to the Royal Perth Casino Commission and is still drafting its first piece of legislation to address some of the issues described in the report that have been going on for many years.
New laws to be introduced soon
These laws will allow the appointment of an independent monitor to oversee the state’s monopoly casino and its operator, Crown Resorts.
“I will introduce the legislation to parliament very, very soon,” said Race and Games Minister Tony Buti.
“But we will take this seriously and carefully consider all the recommendations and make sure we do it right.”
The royal commission was convened last year in response to Bergin’s investigation into New South Wales, which found that international criminal unions were believed to have laundered hundreds of millions of dollars through Crown Perth since 2014, or earlier.
Crown has been given two years to prove he is worthy of maintaining his WA gaming license. (ABC News: Hugh Sando)
Its final report identified the failures of the WA government and the GWC in overseeing the casino, as well as Crown’s failures in its responsibilities to prevent money laundering, criminal activity, and gambling-related harm. ‘chance.
“The Western Australian public has a right to have confidence that the Perth Casino licensee and its affiliates will conduct and organize Perth Casino’s gaming operations in a socially responsible, legal and efficient manner,” he said.
Casino monitor somehow far away
An independent monitor was one of the key recommendations in the report, which found that Crown was not eligible for WA’s only casino license, but had to be given two years, under the supervision of the monitor, to prove that he had solved his problems and that he was worthy. of a license.
It is unclear whether conditions will be set in the Crown Perth Pearl Room for betting players. (Provided by: Crown Perth)
Laws allowing the appointment of an independent monitor are unlikely to be introduced in parliament until after the winter break, although the WA government received the final report from the royal commission in early March. .
A spokesman for Dr Buti said the laws, which would also give the minister and the GWC powers to troubleshoot the casino, were still being drafted.
“Under the proposal, the special monitor will have the appropriate powers to direct the casino to act in accordance with its recommendations,” he said.
“In the meantime, there will be additional powers for the [GWC] to regulate the casino “.
In Victoria, where a royal commission last year also found Crown unfit to hold a casino license, the government has appointed a special manager to oversee Crown Melbourne for two years.
After that, they will inform the regulator that it will determine if the company has reformed its operations enough to be considered eligible for a casino license.
Fears to return to “as always”
Charles Livingstone, a betting researcher and associate professor at Monash University in Victoria, said the manager had broad powers and the ability to direct the casino’s operations quite closely.
But he said he fears the casino will “continue as usual” once the two-year period is over.
A special manager has been appointed to oversee Crown Melbourne for two years. (ABC News: Daniel Fermer)
“Having a special manager in place is an important development and it obviously means they have to be on the lookout,” he said.
“I hope they are alert and will adhere to the book for now.
“But having said that, this special manager and his staff can’t be everywhere at all times, so my point is that the culture of the place hasn’t changed that much.”
The Victorian government has also given stronger powers to its casino watchdog, including allowing it to impose larger fines.
For example, last month he fined Crown Melbourne $ 80 million for violating casino laws by using China Union Pay credit cards, which allowed the illegal transfer of funds from China to games of chance.
Blackstone’s takeover could come before the reforms
When the first stretch of WA casino reform laws is likely to pass through Labor-dominated parliament, Blackstone could manage Crown Perth, Crown Resorts’ takeover has been given the green light by shareholders.
But that agreement depends on Blackstone receiving the seal of approval from the GWC, which has been considering the company’s application since December.
The deal will also need Dr. Buti’s blessing.
Experts are unsure of Blackstone’s long-term plans for Australian Crown casinos. (ABC News: Hugh Sando)
Dr Buti’s spokesman said he had not met with Blackstone, but had met with Crown on the royal commission and “the need for Crown to address it”.
“While the WA government appreciates a constructive commitment, neither Crown nor Blackstone will influence the WA government’s response to the Royal Commission,” the spokesman said.
“The full response will establish a regulatory regime and a governing framework to ensure that whoever owns or runs the Perth casino is held accountable.”
Dr Livingstone said it was unclear what Blackstone’s long-term plans were for Australian casinos.
“Essentially, they are the kind of company that has a reputation for buying assets and splitting into parts that they can exploit to the fullest,” he said.
“I wouldn’t be surprised if they bought them and became the owners of someone else who would operate on them.”
Questions about some recommendations
Although the new laws have not yet been introduced in the WA Parliament, there have already been some changes in the regulation and operation of the casino since the WA royal commission began.
Recommendations aimed at reducing gambling-related harm could affect Crown’s results. (ABC News)
For example, there have been new appointments to both the GWC, including Royal Commissioner Colin Murphy, and to Crown positions and executive boards.
But it is still unknown whether the WA government will implement some recommendations aimed at reducing gambling-related harm, but which could hurt casino revenue, such as:
- Applicants in the high-value hair salon must show that they have the finances to play, and show this on a regular basis.
- Electronic gaming machine (EGM) time limits, with a mandatory pause after three hours of play, no more than 12 hours of play every 24 hours and no more than 28 hours of play per week
- Reduce the minimum EGM bet size to $ 10
- EGM players can pre-set weekly losses and time limits for betting
- It forces card games into EGMs, which could highlight potential gambling-related damage and reduce the risk of money laundering.