Crown Resorts chief faces investigation that could affect his license
Crown Resorts chief executive Ciarán Carruthers is facing an internal investigation launched by the company he was responsible for cleaning up. The investigation follows allegations he intervened to allow certain guests into Melbourne's Crown casino who had previously been ejected by security.
The Australian Financial Review reported that the investigation focused on recent incidents related to Carruthers' alleged priority security procedures. The accusations come from a whistleblower, although there is currently no concrete evidence to support them.
The report comes at a terrible time for Crown, which is already on probation and trying to show gambling regulators it is compliant. Updates about the future will be released this month.
How is this going
Crown, owned by Blackstone Group, confirmed on Wednesday that it had hired an outside law firm to conduct a review. Specific details regarding the nature of the matter under investigation have not been disclosed.
The review ordered by the royal commission appears to stem from two separate issues. In one incident last month, Carruthers allegedly intervened to accommodate a guest who had been banned for a year for bringing a minor into the casino.
Another alleged incident involved Carruthers, who took over Crown a year ago, allowing an visibly drunk customer to remain in the store despite being previously told to leave. Because the unidentified man was in an intoxicated state, security removed him and Carruthers allegedly allowed him to return.
The Victorian Gambling and Casino Control Commission (VGCCC) could also investigate Carruthers. Crown informed the gambling regulator of the ongoing review. A VGCCC spokesman said the regulator was actively investigating the matter but declined to provide further details.
What happens next
The development poses a number of further challenges for Crown as it awaits a review of its casino operations in Melbourne, Sydney and Perth. Special manager Stephen O’Bryan will submit a final report to the regulator next year, completing his two-year term, which expires at the end of this year.
Crown is one of the first Australian casino operators to come under fire for its involvement in a money laundering scheme. It also breached other financial and gambling regulations across the country, leading to it being ruled unfit to hold a casino license in Victoria.
O'Brien was the special manager appointed by the Victorian government to oversee Melbourne's Crown Hotel following the shocking findings of the royal commission. The regulator will then decide whether Crown should retain its casino licence.
Similar trials are taking place simultaneously in Sydney and Perth. Regulators in those states are also likely to make decisions on Crown's licensing later next year. Crown has paid more than A$700 million ($458.64 million) in fines and may face additional charges of tax evasion and other violations.
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Source: www.casino.org
