The Western Australian government will hold a royal commission to examine Crown Perth’s suitability to continue operating.

The decision to look into the operations of the Burswood casino and resort comes soon after the company reportedly failed to prevent money-laundering activities on its properties and was deemed unfit to hold the license for the Barangaroo casino in Sydney.

In February, the government was considering launching an independent inquiry into Crown Perth, more was deemed necessary. “It was determined that although the inquiry would have the powers of a Royal Commission, the Commissioner would not have the immunities and protections afforded by the Royal Commissions Act,” said WA Attorney General John Quigley. According to him, the royal commission is “a very powerful body, a very independent body and it will make recommendations to government.”

It's the first royal commission in WA in 20 years. The commission will be headed by former Supreme Court justices Neville Owen and Lindy Jenkins and former WA auditor general Colin Murphy.

“The royal commission will provide the next state government with a thorough and independent examination of the suitability of Crown Perth to hold a casino license following the Bergin inquiry’s findings of suspected money laundering and junkets linked to organised crime,” said racing and gaming minister, Paul Papalia.

After the initial inquiry, Crown saw the resignation of several of its executives, including John Poynton, who left his position as chairman of the Burswood casino earlier this week.