Blackstone, the corporate giant, has been in the news recently because they have been trying to acquire Sydney’s crown casino.
Blackstone submitted a takeover bid for about $8.9 billion for Crown Casino Sydney Resorts. This bid, however, caused a mixed reaction in the industry.
Crown shareholders like James Parker were among the people who approved this bid and indicated they were on Blackstones’ side from the word go. And over 90% of investors voted yes and agreed with the deal.
Why didn’t the deal go through?
When Blackstone first submitted this bid, some people didn’t agree with including the state-based regulators and watchdogs like the Victorian Gambling and Casino Control Commission (VGCCC) and the NSW Independent Gaming and Liquor Authority (ILGA).
The Victorian Gambling and Casino Control Commission (VGCCC) and the NSW Independent Gaming and Liquor Authority (ILGA) denied Blackstone the license to own the three crown casinos in Sidney. This slowed and stalled down the Blackstone bid.
But this has since changed since the VGCCC, the NSW Independent Gaming, and ILGA have changed their minds and approved Blackstone’s acquisition of Corn Casino Sydney Resorts.
Blackstone now holds a license and can operate the crown casino in Sydney resorts if they choose to.
This license means that Blackstone is a step closer to owning the crown casino Sydney resorts.
A casino license is a significant factor if you want to own a casino in Sydney.
Casino Control Act 1992
The Casino Control Act 1992 (the Act) provides that only licensed casinos can operate in NSW.
In addition, the Act prohibits any person from being in or on licensed premises unless authorized by the license or an employee of the licensee.
The Act also prohibits anyone from being in or on gaming premises unless authorized by the licensee or an employee. These restrictions apply even when no gaming is taking place at those premises.
Anyone who does not have a valid license cannot conduct casino-style gaming at those premises and will be committing an offense if they have any involvement with such premises.
If you do not have a license, your business will be illegal and can be shut down at any time by the police.
According to the NWS, they thoroughly assessed whether Blackstone ticked all the boxes and that there was nothing they missed before awarding Blackstone with the license.
“As the prospective owner of Crown Resorts, Blackstone has been required to demonstrate the highest standards of probity, as well as a commitment to implementing the full suite of operational changes recommended by the Bergin Inquiry.”
“This commitment is critical to ensuring Crown Sydney is free of criminal influence, and the risks of harm associated with casino activities are appropriately managed.”
“The probity assessment has also resulted in certain persons being approved to become Crown Sydney’s “close associates,” says Philip Crawford.
Blackstone Accused of Money Laundering
All this comes after last year’s Victorian Gambling and Casino Control Commission (VGCCC) and the NSW Independent Gaming and Liquor Authority (ILGA) alleged that Blackstone was not cleared to run any casinos in Sydney.
This was after an independent party alleged that Blackstone was participating in crime with cartels. They were also accused of money laundering.
The VGCCC, the NSW Independent Gaming Commission, and the ILGA have granted Blackstone the license but remain concerned about the casino.
This is because Crown Casino is the face of casinos and gambling in Australia. And they intend to keep it that way.
The watchdogs are taking their time with Blackstone because they don’t want Blackstone to ruin the reputation of the casino. The license indicates that Blackstone will only operate the casino for two years.
Still, the shares in Crown went up 2% after the casino watchdogs gave Blackstone the go-ahead.
Last Updated on by Ryan