Australian regulator's move on money laundering delays Crown casino launch

An Australian state gambling regulator said on Wednesday it was suspending the gaming licence of casino giant Crown Resorts Ltd, citing money laundering concerns, delaying the firm's plan to open a $1.6 billion resort in Sydney next month.

An Australian state gambling regulator said on Wednesday it was suspending the gaming licence of casino giant Crown Resorts Ltd, citing money laundering concerns, delaying the firm's plan to open a $1.6 billion resort in Sydney next month. The New South Wales state Independent Liquor & Gaming Authority (ILGA), which was to give a ruling on Crown's new casino next February, said it made the unscheduled move after an inquiry into the company received new evidence late on Tuesday.

"It looks like they've had some analysis done, and it looks like it's positive that money laundering transactions have been identified," ILGA Chair Philip Crawford told reporters. "That gives us great concern. It means basically dealing with the proceeds of crime. We're talking about potentially drugs, we're talking about child sexual exploitation, we're talking about sex trafficking, we're talking about financing terrorism."

A Crown spokesperson was not immediately available for comment. The company earlier requested a trading halt of its shares after the regulator issued a statement saying it would give an update about Crown's planned casino opening. At the inquiry, the company acknowledged the possibility of money laundering taking place at another of its casinos. It has also said it had cut ties with tour operators suspected of being associated with launderers.

Crown, which has casinos in Melbourne and Perth, had planned to open its Sydney waterfront resort in mid-December to capitalise on the peak of the Australian summer holiday period. An inquiry into Crown was called after 2019 media reports accused the firm of dealing with gambling tour operators with links to organised crime to bring Chinese high rollers to Melbourne.

Crawford said the licence suspension would hold until the regulator met in February to discuss a permanent response to the inquiry's recommendations due late in January. In the meantime, he said, ILGA was prepared to discuss a limited opening of Crown's restaurants, bars and other non-gambling operations in Sydney, but "without those approvals, they won't be opening".

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