The Crown (ASX:CWN) share price will be on watch on Wednesday after being found unsuitable to operate its Sydney casino…
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The Crown Resorts Ltd (ASX: CWN) share price will be one to watch when it returns from its trading halt.
This morning the casino and resorts operator requested the halt ahead of the release of the Commissioner’s report in relation to an inquiry into the suitability of Crown Resorts holding the licence for Sydney’s Barangaroo casino.
What has happened?
This afternoon that final report was released and reveals that Commissioner Patricia Bergin has deemed Crown Resorts to be unsuitable to operate its new Sydney casino. This follows a public inquiry which uncovered allegations of money laundering.
According to the ABC, the final report states that Crown Resorts needs to make sweeping cultural changes if it wants to be considered a suitable operator in the future.
Though, it is worth noting that this final report remains a recommendation that requires final approval by the Independent Liquor and Gaming Authority (ILGA). But that is expected to be a formality at this point.
What was said?
According to the AFR, Commissioner Bergin labelled the company as arrogant and “quite unsuitable to hold a casino licence in New South Wales.”
She said: “Any applicant for a casino licence with the attributes of Crown’s stark realities of facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals with connections to triads and organised crime groups would not be confident of a positive outcome.”
“It is obvious that such attributes would render an applicant quite unsuitable to hold a casino licence in New South Wales.”
“These facts and the stark realities expressed so baldly may also suggest that it is obvious that the licensee is not suitable to continue to give effect to the Barangaroo Licence and that Crown is not suitable to be a close associate of the licensee,” she added.
All eyes will be on the Crown share price when it returns to trade after this major setback. This could possibly be as soon as Wednesday morning.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.