The Victorian casino regulator is conducting an inquiry into Crown Resorts following internal investigations initiated by the gaming company’s board. The focus of the probe centers on CEO Ciarán Carruthers and his alleged interventions to reinstate patrons removed from the Melbourne precinct. The Victorian Gambling and Casino Control Commission (VGCCC) has confirmed its active investigation into the matter, with a particular emphasis on claims related to allowing a minor onto the gaming floor.
Regulatory Investigation and Internal Inquiries:
Crown Resorts is under scrutiny as the VGCCC investigates allegations surrounding CEO Ciarán Carruthers and his reported involvement in allowing previously removed patrons back into the Melbourne casino on multiple occasions. The regulator is also examining claims related to a minor accessing the gaming floor. The VGCCC’s active investigation comes in response to Crown’s internal inquiries and has prompted external counsel engagement by the gaming company to conduct an independent review.
Customer Safety and Management Authority:
In response to the ongoing investigations, a Crown spokesman has confirmed the appointment of external counsel to conduct an independent review. The inquiry will delve into the question of whether limitations should be imposed on management’s authority concerning customer safety. Crown Resorts, operating under strict conditions set by the VGCCC, faces critical evaluations of its capability to independently manage the casino, with a decision expected in early 2024.
CEO’s Background and Regulatory Oversight:
Ciarán Carruthers, appointed by Blackstone following its acquisition of Crown last year, brings two decades of experience in Macau overseeing casino operations. The inquiry, led by former Federal Court judge Raymond Finkelstein QC, has led to the installation of a special manager with authority over the casino’s management. Recommendations on the continuation of Crown’s gaming license will also be informed by this regulatory oversight.
Financial Impact and Compliance Measures:
Crown Resorts has been grappling with financial challenges, evident in its agreement to pay a AU$450 million fine to AUSTRAC for breaches of anti-money laundering and counterterrorism laws earlier this year. The company’s financial performance has been adversely affected by the costs associated with enhanced compliance measures and penalties, reporting a loss of AU$199 million in its latest financial statement.
The regulatory scrutiny and internal investigations into Crown Resorts, particularly focusing on CEO Ciarán Carruthers, mark a significant chapter in the company’s ongoing challenges. As the VGCCC assesses allegations and compliance issues, the outcome of the inquiry will play a pivotal role in shaping the future of Crown Resorts’ operations and its ability to hold a casino license independently. The industry awaits the resolution of these investigations and their potential impact on the gaming giant’s standing in the market.