Published
Land-BasedFinancialLegal & RegulatoryIndustry

JP Morgan: Crown Resorts unlikely to lose license

Despite an ongoing inquiry, analysts from JP Morgan say it’s unlikely Crown Resorts will lose its New South Wales operational license, but the suspension of operations is possible.

crownressorts

The NSW Independent Liquor and Gaming Authority is looking into whether Crown breached its license conditions not to be connected with any companies associated with Stanley Ho. In May 2019, Crown shareholder James Packer agreed to sell an almost 20% stake to Melco Resorts & Entertainment, which is owned by Ho’s son Lawrence. The Authority will present its full findings on 1 February 1 next year. And while Crown’s new property in Sydney is scheduled to open on 14 December, it’s probable that it will be impacted by the inquiry as well.

Analysts Donald Carducci and Abhinay Jeggannagari said in a statement, “We do not believe anything beyond a temporary suspension will eventuate, as the company has stated it will undertake a comprehensive review of processes related to junket operators and create a head of compliance and financial crimes role. Given the 2014 Financial Deed Terms (and potential impacts to VIC and WA licenses), the removal of an NSW license seems highly unlikely, in our view.”

JP Morgan predicts that it’s unlikely Crown won’t face any ramifications. One possible outcome is the requirement to address the internal issues, which the company is already doing with the newly established role. There might also be additional requirements placed on the Crown’s license, but then the casino is said to be entitled to claim compensation worth more than 10 times the estimated negative financial impact from nearly any action the NSW government takes, which changes or could change its license.

The minimum compensation is AUD200m unless Crown is found to have breached its license conditions.

Premium+ Connections
Premium

1xBet Partners

 
Premium

Revsharks

 
Premium

RISK

 
 
Premium

Imagine Live

 
Premium

Digitain

 
Premium

GammaStack

 
Premium

PIN-UP Partners

 
Premium

Lynon

 
Premium

Sport Generate

 
Premium

Galaxsys

 
Premium Connections
Consultancy

SCCG Management

Executive Profiles
Zeal Network SE

Stefan Tweraser

VIP Play

Les Ottolenghi

Scientific Games

Keshav Pitani

Social & App

Spribe CEO exclusive: Simplicity is the foundation

Spribe CEO David Natroshvili speaks to Gambling Insider abou...

Redefining iGaming: A history of crash games

Crash games is a growing vertical that has taken gambling by...

A certain something: What makes crash games special?

Crash games. They’re simple, they’re easy to learn and,...

Smarter innovation to shape the future

Spribe CCO Giorgi Tsutskiridze discusses the past, present a...

Facing Facts: The corner of quarterly contemplation

With Q1 reports out across the industry, Gambling Insider co...

Taking Stock: A guide to key stock prices across the industry

Gambling Insider tracks prices from some of the industry’s...

15 years of Gambling Insider: From the Founders

Over the last 15 years, Gambling Insider magazine has interv...

15 years of Gambling Insider: The Awards over time

Global Gaming Awards Event Manager Mariya Savova gives us he...