Crown casino destroyed the Australian casino industry. In fact,...

Crown casino destroyed the Australian casino industry. In fact, Crown’s unlawful and unconscionable conduct was far worse than The Star’s. If Star fails, so should Crown. But this will not happen. The Star Entertainment Group will go into voluntary administration and the various businesses will be split up. The casinos will be kept operating but shareholders will get nothing. Queens Wharf is a financial disaster. Allowing the alleged triads to take over in partnership with the traditionally corrupt Queensland government will be a match made in heaven. The Moonlight state has always operated in a different dimension to the rest of Australia. If it was not so socially backward and corrupt it would be a nice place to live.

Fortunately, for Crown, it had a corrupt state government and an equally corrupt regulator on its side. The Victorian Gambling and Casino Control Commission, formally the Victorian Commission for Gambling and Liquor Regulation, in accordance with the state government’s imprimatur (authoritative approval) has and continues to protect the Melbourne casino. The Crown Southbank complex since regaining its casino licence, has rightfully regained its Vatican status. The Victorian Commission for Gambling and Liquor Regulation knew about Crown’s unlawful conduct. On 5 July 2021, the ABC Four Corners program broadcast the allegations by five former VCGLR staff about the government agency’s corrupt and unlawful practices.

The Victorian government’s mandate that one individual cannot own more than 10% of shares in a casino but it is ok for a private entity called Blackstone to own 100% defies logic. Blackstone now regrets buying Crown. Last year Blackstone secretly had to inject $500 million into Crown Resorts and has been selling off surrounding parcels of land. The Hilton was considering buying Crown Promenade Hotel.

Relevantly for The Star, Crown was fined a total of about $700 million including the $450 million AUSTRAC fine. The Sovereign and Mahogany rooms have suffered significant declines in VIP play. Suncity and the other junkets have gone. Casinos are starting up or upscaling their operations in UAE, Singapore, Philippines, Malaysia and several other Asian countries. Even Thailand is on the casino path.

Crown Melbourne was heavily involved with Suncity and other shall we say politically exposed persons. All in an environment under Chinese law where domestic entities and individuals can only take a maximum of USD$50,000 per year out of the country. And this is only for certain limited purposes. How was it possible for multiple transfers of tens of millions to occur without others knowing. In fact, this cannot happen without government knowledge and acquiescence. The Crown jets operated as diplomatic bags. But should it really be an issue if Chinese money flows into Australia via the casino? Some say it was a Chinese government issue.

Back to the main issue. Crown did many things that Star did not do. For example, engage in drug trafficking and organisation of prostitution services for its VIP customers. It been alleged that Mahogany room staff drugged patron’s drinks in club 23 and in the villas - where security was not allowed to enter. There were also allegations that crown dealers on direction from management were cheating on the baccarat tables.

Star is in palliative care as a consequence of Crown’s misdeeds.

Unfortunately, the NSW government does not have Star’s back and the NSW Independent Casino Commission is independent.

Crown has regained its licence but remains in witness protection living on prime government land with an annual rent of $1 and under the loving protection from the Victorian Gambling and Casino Control Commission. The Star must die so Crown can live.

Crown is untouchable because it has been adopted out to rich parents. Parents who have much more power and money that the Victorian state government. In fact, Blackstone is the world’s largest alternative asset manager. Blackstone has $1.1 trillion in assets under management and has 250 portfolio companies. Blackstone sole focus is making money. Sounds familiar? The only known unknown is who is going to end up owning and operating Star Sydney? If Blackstone had not made the mistake of buying Crown at an exorbitant price it would have been in a similar situation to Star. But Victorians will be paying for Blackstone’s mistake and Star shareholders will pay for Star’s failure. All a consequence of Crown.