The state governments and their regulators do deserve plenty of criticism – not because they acted to install a regulatory vice, but because they applied the onerous conditions too late – allowing for casino misconduct for years.
Star and Crown casinos were ultimately found unfit to hold a licence and Packer was instructed by the regulator to sell down most of his stake in Crown.
James Packer slammed regulation of Australia’s casino sector and former Victorian Premier Dan Andrews.Credit: Seven News
Given Packer was the largest shareholder in Crown during the years of its misconduct and escaped with a $3.3 billion payday, one would think he would be counting his blessings.
Some former directors and executives of the NSW-based Star Entertainment are awaiting judgment in a case launched by the Australian Securities and Investments Commission.
Packer reserves a particular disdain for NSW Independent Casino Commission chief Philip Crawford, who held up the opening of Crown’s Sydney casino and led the NSW regulator during the period of Star’s misconduct.
“It’s one of the miracles of life that Philip Crawford’s got a job,” said Packer. “Star was operating under Philip Crawford’s watch.
Packer is right that the economics of the casino industry in Australia have been torpedoed, but he glosses over the misconduct in which the industry was engaged that led to draconian measures being applied.
Crown’s finances are less transparent now that it is no longer listed, but this year appears to have made its first profit after a series of losses under the ownership of Blackstone.
It now appears to have paid off the last instalment of a $450 million fine to Austrac resulting from former breaches of anti-money laundering laws.
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The Star has been teetering on the brink of bankruptcy for more than a year, but is surviving for now thanks to a cash injection from US casino operator Bally’s Corporation.
One of Packer’s legitimate observations is that there are more onerous regulations applied to gaming in casinos that pubs and clubs have escaped.
It isn’t a level playing field, but the solution would be to impose heavier restrictions on pubs, rather than wind back those on casinos.
But from the comfort of his luxury yacht Packer should be happy that he no longer needs to contend with Australia’s troubled casino sector.
