Insights

Crown (ASX:CWN) share price surges 9% as Victorian casino licence pronounced safe

Victorian royal commission finds Crown conduct ‘disgraceful’ — but it will retain its licence
The post Crown (ASX:CWN) share price surges 9% as Victorian casino licence pronounced safe appeared first on The Motley Fool Australia. –

The Crown Resorts Ltd (ASX: CWN) share price is surging this morning after the final report of the royal commission into Crown’s suitability to run Crown Melbourne found the company “unfit” but didn’t recommend stripping the embattled operator’s casino licence.

The 8-month royal commission uncovered what Commissioner Ray Finkelstein described as “disgraceful” conduct. However, the company’s recent reforms have inspired hope it could be suitable to run Crown Melbourne in the future.

Commissioner Finkelstein’s final report was tabled in the Victorian Parliament this morning. It states:

It was inevitable that Crown Melbourne would be found unsuitable to hold its casino licence. No other finding was open. The only difficult question was what should be done in that circumstance.

At the time of writing, the Crown share price is $10.59, 9.63% higher than its previous close.

Let’s take a closer look at Commissioner Finkelstein’s recommendations.

Crown to keep Victorian licence

The Crown share price is soaring after Commissioner Finkelstein recommended the company keep its casino licence under the close watch of a “special manager”.

The special manager, which Commissioner Finkelstein suggested will likely be a firm, will keep a close eye on Crown’s reforms for the next 2 years.

If, after that period, the manager finds Crown hasn’t returned to suitability, the company’s Victorian casino licence will be binned.  

The Victorian royal commission was investigating if money laundering was still occurring at Crown Melbourne, if the casino had breached other laws, restrictions, or obligations to the state, and how it treats those with gambling addictions.  

During the commission, Crown was found to have underpaid around $37 million of casino tax between 2012 and 2021.

Crown was also found to have allowed Chinese patrons to breach Chinese currency laws. It billed $160 million of gambling spending as hotel expenses. The report found doing so contravened both Australian and Chinese laws and likely led to money laundering.

The royal commission also heard from many people who might have been protected from problem gambling if Crown staff had carried out their obligations under Crown Melbourne’s Gambling Code.

The report states:

Crown Melbourne’s board failed to carry out one of its prime responsibilities; namely, to ensure that the organisation satisfied its legal and regulatory obligations…

Although Crown Melbourne rightly deserves criticism for its past misconduct, and no one connected with the organisation is entitled to much sympathy, what tipped the balance against the cancellation of its licence was that Crown Melbourne has, at great financial cost, embarked on a significant reform program led by people of good will and skill. The program is likely to succeed. If it does, that will be to the benefit of Victoria.

Crown share price snapshot

If today’s gains hold, the Crown share price will have taken back the losses it’s made since the Bergin Report first questioned the company’s suitability to run Australian casinos.

Right now, it’s 4.4% higher than it was when the Commissioner Patricia Bergin’s report dropped in February.

The post Crown (ASX:CWN) share price surges 9% as Victorian casino licence pronounced safe appeared first on The Motley Fool Australia.

Should you invest $1,000 in Crown right now?

Before you consider Crown, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Crown wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

5 things to watch on the ASX 200 on Thursday

Star Entertainment (ASX:SGR) share price surges despite police probe

Crown Resorts (ASX:CWN) share price falls despite new board appointment

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!