Crown Resorts, the Australian casino and resort company owned by Blackstone, has announced plans to cut up to 1,000 jobs. The decision comes as the company faces a decline in tourists and gaming restrictions impacting its operations in Melbourne and Sydney. Crown Resorts CEO Ciaran Carruthers attributes the challenges to reduced foreign tourism, a decline in local workers, and restrictions on gaming play in both cities.
The company currently employs over 20,000 people, meaning the job cuts will affect approximately 5 percent of its workforce. This move comes at a time when state governments are tightening regulations on casinos due to concerns over money laundering. Crown Resorts itself faced significant penalties after the Victorian and Western Australian Royal Commission found it had failed to comply with anti-money laundering and counter-terrorism financing laws.
However, despite these challenges, Crown Resorts recently received approval from the New South Wales Independent Casino Commission (NICC) to retain its Sydney license. The company considers the license a privilege and an obligation, and CEO Ciaran Carruthers emphasized their commitment to building trust with communities and becoming a beacon of excellence for integrated resorts.
The NICC’s decision followed a similar finding by the Victorian Gambling and Casino Control Commission, which declared Crown Melbourne suitable to continue operations. The Finkelstein Royal Commission recommended that Crown be allowed to operate under strict independent oversight conditions for two years, determining that the company had the will and capacity to transform itself.
The investigation into Crown Resorts revealed several concerning findings. The company maintained a business relationship with a major casino junket operator connected to an organized crime group, failed to appropriately monitor billions of dollars in transactions, and did not report suspicious activities to law enforcement. Additionally, there were 75 suspicious incidents involving $23 million in cash in a private gaming room exclusive to one casino junket operator.
Crown Resorts faced penalties of $700 million for these breaches, with $450 million paid to the Australian Transaction Reports and Analysis Centre (AUSTRAC). Meanwhile, rival company Star Entertainment, owner of Star Casino, is still awaiting the NICC’s decision regarding its Sydney license due to similar failures in anti-money laundering and counterterrorism measures.
In light of these developments, Crown Resorts remains committed to its regulatory obligations and ongoing transformation. The company has implemented Crown PlaySafe, a safety initiative, and has plans for transformation in Melbourne and Sydney. The job cuts are part of the company’s efforts to navigate the current challenges and ensure compliance while providing a safe and entertaining environment for guests.
As Crown Resorts takes steps to address the issues raised by the royal commissions and regulatory bodies, it will be interesting to see how the company transforms itself and rebuilds trust with both the authorities and the public. The decision to retain its Sydney license suggests that the NICC believes Crown Resorts has the potential to rectify its shortcomings and operate responsibly in the future. With its ongoing commitment to compliance and cultural transformation, Crown Resorts aims to become a model of excellence in the integrated resorts industry.
