(Adds additional report findings)
SYDNEY, Oct 26 (Reuters) - Australia's Crown Resorts (CWN) is unsuitable to hold its casino licence in Melbourne and an independent manager should oversee its operations for the next two years, an inquiry has found.
In a report tabled in state parliament on Tuesday, Victoria's Royal Commission recommended that Crown's Melbourne licence be cancelled if the regulator is not "clearly satisfied" the operator is suitable to hold a casino licence at the end of that period.
The inquiry heard detailed accounts of Crown's enabling money laundering and failing to act on regulatory concerns. It is the second such probe after one in neighbouring New South Wales state heard similar accounts.
Crown has been given a two-year grace period to improve its Melbourne casino operations, the company’s long-time flagship, rather than being immediately stripped of its licence to operate in Australia's second most populous city.
"Although Crown Melbourne rightly deserves criticism for its past misconduct ... what tipped the balance against the cancellation of its licence was that Crown Melbourne has, at great financial cost, embarked on a significant reform program led by people of good will and skill," the report said.
