Where Star has just begun his journey to clean up, having received most of his senior management and board of directors over the past few weeks, Crown is on the path to a renaissance of regulations.
Crown has a whole new team at its top management, has a new board, and has spent tens of millions of resources on risk management.
That said, the state government and its gaming regulator, ILGA, are likely to take a prudent approach with the Sydney Crown license, which will be provided conditionally and provisionally for a specified period of time.
Similarly, Crown was able to retain its casino license after the royal commission in its suitability, but only under independent supervision.
The timing of the NSW state government’s decision to let Crown start playing is certainly curious.
Tic, tac … Not long before the Crown’s Barangaroo cards are dealt. Credit: Edwina Pickles
Just a few weeks ago, ILGA’s public investigation into Star’s suitability for a casino license ended with the assistance of a lawyer who recommended that he not pass this test.
Like Crown, the Star investigation revealed the damaging work of an organization that shows an ethical and cultural decay, open to the infiltration of organized crime. The Royal Crown Commission’s report described the management of Crown Melbourne as shameful and its practices as illegal, dishonest, unethical and exploitative.
The board that attended NSW’s investigation into Star said that failures in risk management, due diligence and oversight of the lucrative VIP business “junket” extended to the head of the organization, including the former CEO Matt Bekier.
The NSW government’s view of sealing Barangaroo’s opening while Star’s transgressions were still in the spotlight would have been unfortunate.