Victorian government announces royal commission into Crown casino
Sumeyya Ilanbey and Patrick Hatch - February 22, 2021
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Crown’s future as the operator of its giant Melbourne casino has been thrown into doubt after the state government announced an unprecedented inquiry into whether the company had broken the law and was suitable to hold a gaming licence in Victoria.
The $5 million royal commission, to be run by former Federal Court judge Ray Finkelstein and due to report on August 1, will also be required to say whether any Victorian law should be changed after the company’s links with organised crime and money laundering were revealed in reports in The Age and The Sydney Morning Herald, and a scathing NSW inquiry.
Shortly after the government announced the royal commission, Crown informed the sharemarket that long-serving director Harold Mitchell would step down from the company’s board – the fifth director including the CEO to be forced out in the past fortnight.
The state government said in a statement the royal commission was a response to the “serious findings” of the NSW Independent Liquor and Gaming Authority (ILGA) inquiry, which ruled Crown unfit to hold a casino licence at its newly built Barangaroo complex in Sydney. The Western Australian government has since also announced a judicial inquiry into the operations of the Crown casino in Perth.
Mr Finkelstein is a highly regarded barrister in Victoria who was appointed a judge of the Federal Court in 1997 but retired in 2011 and returned to private practice. His terms of reference are tightly focused on the company’s officeholders and the Victorian law, and include investigating whether Crown Melbourne or any of its representatives were suitable to hold a casino licence, whether it was in the public interest for Crown to continue holding its licence and whether there were any changes required to Victorian legislation.
The Victorian government said a royal commission’s ability to compel witnesses and documents made it the best way to establish the facts. Premier Daniel Andrews issued a statement saying the inquiry was “about making sure that those who hold a casino licence in Victoria uphold the highest standards of probity and integrity – and that they’re accountable for their actions”.
But Mr Andrews did not attend Monday afternoon’s press conference, leaving Gaming Minister Melissa Horne to answer questions. Ms Horne said the reports from the NSW inquiry were “incredibly concerning”.
Helen Coonan, Crown’s executive chairman, said in a statement that Crown “welcomes the announcement” and the company would “fully cooperate with the royal commission”.
“It provides an opportunity to detail the reforms and changes to our business to deliver the highest standards of governance and compliance, and an organisational culture that meets community expectations,” she said.
Reverend Tim Costello, chief advocate for the Alliance for Gambling Reform, said he was “thrilled”.
“For nearly 20 years I’ve been saying we need a royal commission, and I didn’t think I’d live to see it. Maybe I can now depart in peace.” He said Mr Finkelstein was “a really good appointment”. But he warned that it was unlikely Crown would lose its licence as a result of the royal commission.
However, “Crown would still be feeling quite comfortable”, he said, pointing out that the Andrews government had extended its licence to 2050. “During the Bergin inquiry, Premier Andrews said of course we wouldn’t be cancelling Crown’s licence. … [so] we know Crown still have a fair bit of protection.”
He said Victorians had “lost confidence in Crown and in the government’s ability to govern Crown”.
Federal MP Andrew Wilkie, elected on a gambling reform platform a decade ago to a seat in Tasmania, said the royal commission was the only credible option left to the Andrews government.
“For decades a series of Victorian governments, Liberal and Labor, have profited from the organised crime run out of the state’s only casino … A judicial inquiry can hopefully also get to the bottom of the political protection racket that has plagued this issue.”
Anti-gambling campaigner Stephen Mayne said the royal commission also needed to “compel current and former Victorian regulators and key political figures, including Jeff Kennett, Daniel Andrews and former gaming minister Marlene Kairouz to give evidence, broadening on the work of the Bergin inquiry, which focused more on Crown personnel”.
“Issues worthy of exploration include evidence of Crown’s lobbying and political power, including through the regular political donations that it makes and the long line of political figures that it has hired to influence the political and regulatory process.”
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