Crown Resorts, a well-known gambling venture, is facing severe issues with its flagship casino. The gambling operator might lose its Melbourne Gaming license after a public inquiry revealed several alleged acts.
The company’s suitability to run gambling operations in Melbourne is in question. The recently conducted inquiry revealed concerns regarding money laundering and unpaid taxes. In February, authorities restricted the 1.7 billion dollars Sydney-based casino, with alleged actions surfacing months after its opening.
However, the verdict did not affect Crown’s sponsorship with the rugby club, South Sydney Rabbitohs. Besides the Sydney case, the casino has also faced several M and A discussions. Now, the casino is facing issues with its Perth casino as well.
Here is a series of events Crown experienced this year:
- March: Blackstone’s 6.2 billion dollars proposal was rejected
- July: Start Entertainment withdrew the 9 billion dollars merger proposal
- Deals with Oaktree Capital failed
The casino held a high stature in the sports betting arena after taking over BetEasy and rebranding as CrownBet in late 2014-early 2015. However, the company had to sell the casino for 117 million dollars three years later to meet debts.
The Victorian government will assess the suitability report regarding Crown’s Melbourne casino. No information regarding the report is to be made public till then. The Victorian minister also commented on the situation stating authorities will announce the final verdict by November 1st.
News regarding such concerns has been surfacing for a couple of months now. A month ago, the Crown faced accusations from a lawyer, demanding that the casino be closed. Now, the latest inquiry has worsened Crown’s position in the market, even threatening its overall standing.
