Crown Perth to keep casino license as WA government declares reforms successful

Three years after a royal commission ruled it unfit to run a casino, Crown Perth has been given the green light to keep its license, and it won’t face any penalties or extra conditions.

Gaming Minister Paul Papalia said the casino had “comprehensively changed their practices” following an extensive remediation process overseen by an independent monitor.

The royal commission into Crown Perth had uncovered serious failings at the casino. It found the company had facilitated money laundering, allowed criminal junkets to operate, and failed to protect people from gambling-related harm. But the commission didn’t go as far as recommending Crown be stripped of its license.

Instead, it called for sweeping reforms, with an independent monitor appointed to oversee Crown’s efforts to clean up its act. Over more than two years, the monitor tracked changes at the casino and handed a final report to the WA Government in January.

The report, spanning 1,000 pages, included 59 recommendations for the government. So far, 32 have been completed, 18 are still in progress, and nine depend on changes to state laws.

Papalia had the power to revoke Crown’s license, impose a fine of up to AUD 100 million ($65 million), or enforce strict new conditions. But he chose not to take any further action.

When asked if Crown had gotten off lightly, Papalia rejected the idea. “To say that there’s not been any impost on them is not correct,” he said, cited by the Australian Broadcasting Corporation.

“They have comprehensively changed their practices, they’ve had to implement new procedures, buy new equipment, apply new methods to ensure that they are complying with the recommendations.

“There are practices and procedures in place to address anti-money laundering and counter-terrorist funding measures that are required and also further measures to reduce the harm from gambling.”

Crown Perth says WA government casino decision shows its transformation

Crown Resorts and Crown Perth welcomed the decision in a press statement. “This outcome is a testament to Crown’s whole of business transformation and the implementation of its industry-leading standards and dedication to guest safety,” the company said.

Crown noted that “all three Crown properties have now been deemed suitable by state regulators, with Melbourne and Sydney retaining their licenses in March and April 2024, respectively.”

“Today’s announcement is recognition that we are a changed business. The community, our team members, our suppliers, and our guests were relying on us to get this right – and we have.” – John Van Der Wielen, Crown Perth Board Chair

The company said Crown Perth had “implemented significant reforms following a business-wide transformation, ensuring a safe and enjoyable environment for both guests and team members.” It added that “approximately $200 million has been invested in these reforms, with key areas of focus including harm minimisation; financial crime; governance, compliance and risk; and culture.”

“This work has embedded meaningful change in the culture of the business, improved practices, reporting, monitoring, and accountability across Crown’s diverse operations,” the statement continued.

The company also noted that during the monitorship it had been “collaborative and transparent, producing more than 8,300 documents.” Crown Perth will introduce carded play on all electronic gaming machines from December 1.

The statement described it as “a further demonstration of Crown’s commitment to responsible and safe gaming,” noting that this was implemented at Crown Melbourne in a world-first initiative in December 2023. Since then, over 400,000 guests have registered for carded play.

‘Changed business’ Crown Perth has been given the green light after being under the spotlight. Credit: Crown Resorts

Speaking about the decision, Crown Perth Board Chair John Van Der Wielen said: “Today’s announcement is recognition that we are a changed business. The community, our team members, our suppliers, and our guests were relying on us to get this right – and we have.”

Crown Perth CEO Brian Pereira responded: “Holding a casino licence means holding a social licence – and we have a responsibility to operate with the highest level of integrity every day. With our improved culture, processes, and industry-leading standards, we are well-placed to continue delivering a safe and responsible environment for our guests.”

Crown Resorts CEO David Tsai added: “Our extensive business-wide transformation has set new benchmarks for the industry, creating a safer environment for our guests and the community.

“With all three Crown properties now deemed suitable and retaining their casino licences, we are focused on remaining the safest place to game in Australia, while also delivering exciting world-class entertainment experiences for our guests.”

ReadWrite has reached out to Crown Resorts for comment.

Featured image: Crown Resorts

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