What is the latest with Crown Resorts (ASX: CWN)?

Key Takeaways:

• Crown Resort is under spotlight following its announcements made in March 2022.
• On 24 March 2022, Crown was notified about the release of the Perth Casino Royal Commission Report after being tabled in the Western Australian Parliament.
• On 01 March 2022, AUSTRAC served a statement of claim to Crown Melbourne Limited and Burswood Nominees Limited to start civil penalty proceedings.

On 24 March 2022, Crown Resorts Limited (ASX: CWN) released an announcement stating that it had been notified about the release of the Perth Casino Royal Commission Report after being tabled in the Western Australian Parliament. The Company acknowledged the findings and recommendation and will review the Report and work supportively and constructively with the Western Australian Government.

Perth Casino Royal Commission Highlights:

In the Perth Casino Royal Commission Report, it was highlighted that the Royal Commission was appointed to inquire into two areas.

• The first was the valuation of the suitability of Burswood Nominees Ltd to be concerned in or linked with the organisation and conduct of the gaming business of a licensed casino. Further, the valuation includes whether Burswood Nominees Ltd should continue to hold the casino gaming licence for Perth Casino. Also, the inquiry includes the appropriateness of Crown Resorts Limited and subsidiaries Burswood Limited and Burswood Resort (Management) Limited to be concerned in or linked with the organisation and conduct of the gaming operations of a licensed casino.
• The second area of inquiry was related to the adequacy of the framework to regulate casinos in Western Australia.

The inquiry happened after it was found that two of CWN’s other subsidiaries were either not appropriate to be approved a casino license or not suitable to hold a casino license in NSW and Victoria. The relevant Crown entities are currently being watched to conclude their suitability to attain or retain a casino license.

The NSW and Victorian inquiries did not, and could not, address the appropriateness of the Perth Casino licensee to be associated with the organisation and conduct of casino gaming at Perth Casino. Hence, the inquiry was established to look at the matters raised in those other findings in the context of Perth Casino.

On the other hand, the inquiry in NSW propelled the requirement for this inquiry to look into the risks that money laundering and junkets posed to the proper operation of Perth Casino. Other than this, it gained attention that CWN’s promotion of gambling in Australia to Chinese residents had caused the custody of Crown staff in China, which is being referred in the Commission for this inquiry.

Also, the Victorian Royal Commission pointed to look into other matters such as the impact of casino gambling, the relationship between the regulator and the casino licensee, and the appropriate payment of casino tax.

The focus would also be given on casino regulation.

Management Commentary:

Other Updates:

On 01 March 2022, CWN announced that AUSTRAC served a statement of claim to Crown Melbourne Limited (Crown Melbourne) and Burswood Nominees Limited (Crown Perth), beginning civil penalty proceedings claiming breaches of obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. 

The beginning of this proceedings follows a long-running investigation that started in October 2020. Both these businesses Crown Melbourne and Crown Perth supported AUSTRAC during the investigation.

Stock Information:

At AEDT 3:17 PM, CWN shares are trading at AU$12.530, up 0.481% from the previous close. It has a market capitalisation of AU$8.44 billion.

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