Crown Resorts has received approval from all regulatory bodies to go forward with its sale to US private equity firm The Blackstone Group. The Western Australian Minister for Racing and Gaming and the Gaming and Wagering Commission of Western Australia have given the nod following approvals last week announced by Victorian and NSW regulators.
Shareholders have already approved the sale. The Federal Court of Australia is the last major government body that needs to give consent to the acquisition.
Lanie Chopping, Wagering Commission Chair stated, “Blackstone has been subject to an extensive probity assessment by the Gaming and Wagering Commission. The Gaming and Wagering Commission’s probity approval has been granted subject to a number of conditions designed to ensure that the Commission has oversight and the capacity to monitor any change in licensee management or ownership.”
Such terse wording for a new entity to operate a longstanding and important economic engine comes from the fact that a Royal Commission was formed to look into past business practices at Crown Perth that included lax money-laundering controls and other important regulatory mess-ups.
Casinos to Operate Under Tougher Regulatory Conditions
Some of the enhanced conditions the new owner must abide by are tougher anti-money laundering and responsible gambling oversight, keeping institutional investors at arm’s length to prevent interference in the daily operations of the casino, and a requirement to report any investigations by other regulators into activities at Crown Perth.
A moratorium on Blackstone changing funding arrangements or its corporate structure was also put in place with the caveat that prior notice and approvals would allow such changes.
Racing and Gaming Minister Tony Buti said, “As the prospective new owner of the Perth Casino, Blackstone will be required to meet a number of stringent conditions. These conditions align with a number of the recommendations stemming from the recent Perth Casino Royal Commission.
“The State Government has already made significant improvements to the regulatory regime and remains committed to establishing an even tougher regulatory and governance framework to ensure whoever owns or runs Perth’s casino is held to account.
“The conditions on Blackstone, combined with upcoming reforms, will ensure appropriate standards are upheld at Perth’s Casino.
“This detailed and complex process undertaken since the application was submitted last year involved the comprehensive independent assessment of relevant Blackstone entities in accordance with the legislative requirements.”
Steady as She Goes With a Hand Firmly on the Tiller
Last Thursday, Crown announced that it had received approvals from the New South Wales Independent Liquor and Gaming Authority (ILGA) and the Victorian Gambling and Casino Control Commission (VGCCC) for Blackstone to purchase all shares in the operator for US$6.5 billion (AU$8.9b).
Crown Melbourne will continue to operate under a Special Manager appointed by the Commission and will have its suitability to hold a casino license reassessed in 2024.
VGCCC Chairperson Fran Thorn said: “Our approval comes with stringent conditions which balance delivering stronger controls on the casino and ensuring it continues to be the flagship casino in Australia. We will take action should any of these conditions not be met by either Blackstone or Crown.”
Source: Western Australia regulator gives green light for Blackstone acquisition of Crown, Inside Asian Gaming, June 12, 2022