Crown Resorts i Star Entertainment Group have entered into an agreement with New South Wales Independent Liquor & Gaming Authority that will cease all international junket operations.
In addition, both will also work with the Authority to ensure that all gaming at their casinos is cashless and that card technology is used via a link to an identity and recognised financial institution.
In addition, Crown has also reached agreement on several other issues relating to the operation of the Barangaroo Casino, which are the result of discussions with the regulator following the Bergin report on the future management and operation of the facility.
Crown was thus deemed incapable of supporting 2.2 billion $ Crown Sydney Hotel Resort , and the report points to poor corporate governance and culture and flawed risk management structures and processes.
The Crown has agreed to pay its share of the cost of the Bergin investigation of $12. 5 million, as well as a commitment to an annual "casino supervisory fee" of $5 million in each of FYs 2021 and 2022. The FY 2023 casino supervisory fee is subject to further consultation with ILGA.
In addition, as previously announced, the company will cease smoking at its Australian 2022 resorts by the end of December.
Helen Coonan, President of the Crown , explained: "While we recognise we have more to do, we welcome today's indication from the ILGA that the reform introduced by Crown is at an advanced stage in terms of suitability for Crown Sydney's gaming operation.
"It is important to know that we are on the right track, but I have assured the regulator that there will be no complacency as we continue to make changes to improve our governance and compliance processes across the organisation. "
Philip Crawford, President of ILGA , says Crown is making "significant progress" in addressing the serious issues raised in the report: "Crown, through its chair Helen Coonan has raised many of the issues that led Commissioner Bergin to conclude that it was inappropriate to have a casino licence in NSW," he said.
"The Authority has also entered into an agreement with CPH to resolve issues relating to its influence and control of Crown management ".
In addition, it has also been confirmed that an independent monitor has been appointed who will report to the Authority on a number of Crown's structural changes, with a particular focus on corporate governance, anti-money laundering measures and culture.
"The Authority is awaiting the report of the independent monitor and the results of the audit of the financial accounts , before making a final decision on suitability, "he added.
"Any changes to Crown's ownership structure, including proposals for acquisitions or mergers, would require the Employer to consider a range of issues, including fully assessing the fairness of any new entrants, how the merged entity would operate and the extent to which any existing Crown contracts would need to be reviewed.
"Any concerns about monopolies would be the responsibility of the Australian Competition and Consumer Commission."
Earlier this week, it was confirmed that Star Entertainment Group had a proposal to connect 12 billion AU $ to Crown Resorts , which he said would create a "national leader in tourism and entertainment."
The proposal pits the casino operator against Blackstone Group , which already owns just under ten percent of the group, and revised its offer to AU$ 12. 35 per share after previously making an offer of 11. 85, valuing the group at AU$ 8 billion last month.