The Crown Resorts Ltd (ASX: CWN) share price is in the green today despite the Perth Casino Royal Commission finding the company unfit to run Western Australia’s only casino.
But the commission is giving Crown two years to clean up its act, which is likely why the share price is not falling off a cliff today.
At the time of writing, the Crown share price is trading 0.64% higher at $12.55.
The Perth Casino Royal Commission report, released today, concluded that Crown entities were not suitable “to be concerned in or associated with the organisation and conduct of gaming operations of a licensed casino”.
Further, the report said that Crown should not continue to hold the gaming licence for Perth Casino.
It contains a number of recommendations for remediation, which will be independently supervised.
Crown released a statement in response today saying it would review the report and “work cooperatively and constructively” with the Western Australian Government in relation to its findings and recommendations.
Crown found ‘facilitating money laundering’
According to the report, Crown’s failures at Perth Casino include:
facilitating money laundering through the Riverbank accountsfailing to have an effective anti-money laundering program permitting junkets with links to criminals to operate at Perth Casinofailing to minimise casino gambling-related harm in many ways.
The report contains 59 recommendations for Crown to address to get its house in order at Perth Casino.
The report acknowledged that Crown has already undertaken some steps following similar inquiries in New South Wales and Victoria.
Those inquiries also found Crown unsuitable to hold a casino licence in each state.
What did Crown management say?
Crown managing director and CEO Steve McCann said:
Significant progress has been made with Crown’s transformation program, the implementation of company-wide reforms, and establishing the highest standards of governance. This includes investment in people, systems,
processes, culture and a sharp focus on responsible gaming and the prevention of financial crime.
Crown remains committed to continuous improvement across all facets of the business and is prioritising the delivery of safe and responsible gaming across all of our resorts, including Crown Perth.
The Crown share price began its spectacular decline in May 2021 during the Crown Melbourne inquiry.
Crown shares cratered by 33% over June and July 2021 to a new 52-week low of $8.47. The shares have gradually recovered to a level similar to where they were before all this drama started.
Last month, Crown accepted an $8.9 billion takeover offer from US private equity behemoth Blackstone Group.
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