James Packer Crown Casino Sydney

admin  4/9/2022

A probe has been told billionaire James Packer is an unsuitable person to be associated with gaming giant Crown Resorts, which is under scrutiny over whether it should keep a licence for Barangaroo casino in Sydney. The government’s probe will release its report by February 2021 whether Crown and its close associates are suitable to hold a gaming licence for the near-complete Barangaroo casino in Sydney. It has already raised the prospect of investment or voting right caps on Mr Packer’s 34 per cent shareholding in Crown. Despite his passion for the Sydney casino venture, Packer has been winding back his involvement with Crown and in 2018 announced he would step back from all commitments due to poor mental health. James Packer appearing in the Crown inquiry (Image: Supplied) James Packer has forgotten much about his involvement in or influence on the development and operations of the Crown Casino group, of. One of James Packer’s key lieutenants, Michael Johnston, has blamed others at Crown Resorts for problems unearthed during an inquiry into the casino business. Johnston, who is one of Packer’s.

Crown Sydney is one of the most anticipated projects in Sydney, as it will give a new look to the Barangaroo waterfront area. The massive addition to the area will include a hotel, apartments, restaurants, and a VIP-focused casino.

Construction on the project finally began in 2016, though sometimes stalled periodically due to legal battles and other red tape. Though the estimated completion date has changed numerous times, it is now expected to open on Christmas Day 2020. That’s what James Packer says, anyway.

Packer Visits Sydney Site

Earlier this month, billionaire investor and largest Crown Resorts shareholder James Packer emerged from a mostly self-imposed exile from public life to tour the Crown Sydney development site. He seemed pleased with the progress of the $2.4 billion project at Barangaroo.

In fact, Packer was so pleased that he announced to the media that it would open to the public on Christmas Day this year.

The dates for the opening of the property have changed numerous times. When the project first began, the opening date was expected to be early 2020 for the first tower and the end of 2020 for the rest of it. But along the way, due to numerous battles over the height of the tower and other major details, the opening was delayed. Most expected it to open sometime in 2021.

Packer was particular, though, by naming Christmas Day of this year in his first public appearance in more than a year.

“It’s really pleasing,” Packer said to the media, referring to the opening being three months earlier than planned. “We are truly indebted to our builders, architects and tradies who have made this possible.”

Mid-2019 Issues Resolved

As mentioned, the Crown Sydney project had been delayed numerous times. The most significant and lengthy problem had to do with the height of the tower.

Crown Resorts believed they paid a price for the property that included an exclusive view of the harbor. At one point, Crown and its building partners discovered that the Barangaroo Delivery Authority(BDA), run by the New South Wales government, took bids from other companies for taller buildings that would hinder the Crown tower view.

The two entities went to court, and the battle moved through to the NSW Supreme Court. In December 2018, that court ruled for Crown, ruling that the BDA violated its development agreements with Crown and co-plaintiffs Lendlease.

An appeal by the BDA resulted in a settlement. The details were not publicized, but the NSW government dropped its appeal, and Crown retained its claim to the exclusive views.

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Crown Sydney Project Details

The website dedicated to the project, which still boasts of an early 2021 opening date, gives insight into the new destination for visitors to Sydney. It is described as a “pinnacle of modern design that harmoniously brings together an opulent hotel, prestigious apartments, signature restaurants, premium gaming areas and a lavish spa.”

One Barangaroo will be the tower of residences – 82 of them – with views of the Sydney Harbour and its landmarks. The apartments range from 2-bedroom to 6-bedroom homes with some Duplex Penthouses as well.

Packer purchased two floors of the hotel, not the residence tower, that are being converted into a second home for him. “I grew up in Sydney, and my kids still spend time here,” he said. “It’s a beautiful place, and I hope to spend more time visiting.”

And there will be gaming. But Crown Sydney has taken special care not to call the casino a casino. The website calls it a “premium table games experience.”

Evidently, there will be no pokies, only table games like baccarat, blackjack, and roulette. And though the website is sparse on details, it does refer to a “VIP-only gaming facility.”

Previous Problems with VIP Gaming

The Crown scandal that took the company and gaming community by storm in 2019 had fallout that particularly affected VIP gaming in Australia.

Much of the spotlight was on VIP gamblers at Crown properties, many of whom used junkets to travel from Asia and gamble for high stakes. After the scandal broke, though, the government crackdowns began, and most junkets stopped.

This put such a dent in Crown’s bottom line that Crown Executive Chairman John Alexander had to acknowledge it at a shareholder presentation in late 2019. He revealed that VIP turnover for the first three and a half months of the new fiscal year, which started July 1, was down 46%.

Crown blamed much of the downturn on the Chinese economy hurt by the United States and on the media that publicized the scandal.

James Packer Crown Casino Sydney

Regardless, Crown Sydney is going to face a challenge to create a successful new VIP-only gaming facility, one with no pokies, at the new property. The new environment and scrutiny on high-stakes gambling will be a test of Crown’s dedication to gaming.

Via Yahoo Finance

It is more than two years since one of Australia’s richest men, James Packer, disappeared from the public eye saying he needed to take care of his mental health.

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When resigning in 2018 for the second time from the board of Crown Resorts, the casino company he founded, a brief announcement to the Australian stock exchange confirmed what his close friends already knew and many suspected: Packer was taking time out for “personal reasons”.

More details were revealed subsequently in an empathetic biography by the journalist Damon Kitney, who was given access to Packer and his inner circle. Kitney detailed Packer’s struggles with depression, alcohol and the end of his marriage to Erica.

Since then, Packer has lived overseas in Los Angeles, Mexico and Argentina and largely disappeared from the glare of public scrutiny that had intensified during his brief and disastrous engagement to singer Mariah Carey.

Related: John Alexander tells inquiry he doesn’t recall being briefed over $5.6m found in Crown casino cupboard when he was CEO

He did not attend the 2018 and 2019 annual general meetings of Crown, despite being its largest shareholder.

That’s reason enough for the intense interest in his scheduled appearance – via video link – on Tuesday at the NSW inquiry into whether Crown Resorts remains suitable to hold a casino licence.

Whether it’s prurient interest or genuine concern, the story of one of Australia’s richest sons and his battles with his demons strikes a chord with the public.

But there are also plenty of questions that only Packer can answer about his casino business, its culture and how it came to be the subject of serious allegations of money laundering and links to organised crime.

At stake is the future of the high-roller casino that will occupy several floors of Crown tower, which has risen 275m at Barangaroo on the shore of Sydney harbour.

James Packer Crown Casino Sydney Opera House

Under NSW law, a casino licensee in the state and those deemed associates must remain suitable to hold their licence. But other states where Crown operates are also watching.

Crown could lose everything if allegations made by Nine media outlets – of Crown executives turning a blind eye to money laundering and the criminal connections of its junket partners – are upheld. If deemed serious enough, Crown’s licence could be revoked.

So far executives have told the inquiry that Crown ran accounts that allowed cash to be deposited anonymously and which were not subject to the reporting regime. They also admitted that $5.6m in cash was found in a cupboard in a high-roller room, run by junket partner Suncity, in Melbourne. There have been allegations about Suncity’s connections to organised crime.

James Packer Crown Casino Sydney

The commissioner overseeing the inquiry, former supreme court judge Patricia Bergin SC, needs to be convinced that Crown has the systems, the executives, the culture and the will to tackle these issues in the future. In short, that it remains suitable to hold a Sydney licence.

Related: Crown casino inquiry: John Alexander unable to shed light on why James Packer left board

SydneyJames packer crown casino sydney opera house

As the largest shareholder, Packer is one of those associates that must also be suitable. It all adds up for an uncomfortable few hours for Packer.

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Unlike those who work for him, who appeared via video link from their offices, Packer will be beamed in on Tuesday from his super yacht.

The $200m sleek white luxury cruiser designed by Bennetti and measuring 108m, with accommodation for 22, was last logged on the website Marine Traffic near Papeete in Tahiti. Packer is due to appear in the afternoon via satellite and, hopefully, communications will prove as state of the art as the yacht itself.

As the largest shareholder in the listed Crown, currently holding 36%, Packer alone could give many of the answers as to just what happened to the proposed sale of 19.9% to Melco Resorts, the company of Macau-based casino mogul Lawrence Ho.

The sale has fallen apart due to the impact of Covid-19 on casinos around the world and Ho has offloaded the 10% he had purchased in the first tranche of the deal to Blackstone, a private investment company.

But there remains the question of how Crown, a listed company, failed to tell the regulator of the proposed sale ahead of time and have the new significant shareholder vetted. So far, the evidence heard by the inquiry points to Packer having personally negotiated the deal.

There is an added complication: a specific clause in the Sydney casino deed with the NSW government prevented Lawrence’s father, Stanley Ho, a notorious figure in Macau, and a long list of companies associated with him, from taking an interest in the licence.

The reason? The NSW government was determined that organised crime should not get a foothold in the Sydney casino, and Stanley Ho had been found by other overseas casino authorities to have links to criminal elements in Macau.

Crown executives have so far given evidence that they thought Melco was Lawrence’s company. But in fact, the largest shareholder in Melco International is Great Respect, which runs a family trust. Stanley Ho, who died recently, was one of the beneficiaries.

The regulator is concerned about Crown’s culture.

The evidence heard by the inquiry so far paints a picture of a company that is unable to evaluate itself, does not have good reporting structures, is defensive when criticised and does not have rigorous risk management.

Board members have repeatedly denied knowledge of behaviour that might have raised red flags to the possibility of money laundering.

They appear to have failed to explain why warnings about the crackdown in China on soliciting Chinese gamblers wasn’t brought to their attention, leading to the arrest and jailing of Crown’s China staff en masse in 2016.

Time and again Bergin has asked: “If the company doesn’t know what’s happening internally how on earth is a regulator supposed to know?”

Tuesday is Packer’s turn to be quizzed. He may not be on the board, but as the founder and largest shareholder, with representatives of his private company on the board, he will face intense scrutiny about Crown’s corporate culture.

He will be asked about how it came to this: that Australia’s largest casino operator is being accused of being a laundry for drug dealers and organised crime and could face losing its licence before its Sydney casino has even opened.