Melco International Development Ltd, the parent company of Hong Kong-based casino operator Melco Resorts & Entertainment Ltd, revealed that it has entered into a settlement agreement with the gambling regulator of the Australian state of New South Wales in relation to a case concerning Melco’s acquisition of shares in Crown Resorts Ltd in 2019.
Litigation Stemmed from 2019 Acquisition Deal
Melco International originally planned to acquire a 19.99 percent stake in Crown Resorts under a US$1.2 billion deal which would be completed in two installments.
The first installment saw Melco purchase almost a 10 percent stake in 2019 from Crown’s then-largest shareholder, James Packer. But in 2020, the company decided not to proceed with the previously agreed transaction and subsequently sold its Crown shares at a 37.3% discount.
Melco Settles ILGA Dispute
In the same year, Crown became the subject of a licence suitability inquiry in New South Wales. The probe also examined if the acquisition deal between Crown and Melco constituted a breach of the former’s restricted gaming licence for its Sydney casino. The Independent Liquor and Gaming Authority (ILGA) determined that Melco should pay AUD3.7 million (approximately US$2.4 million) over issues with its 2019 transaction with Crown.
In a filing to the Hong Kong Stock Exchange on August 31, Melco confirmed that the case has been settled, though it did not delve into the details of the settlement deed.
Bedford, New Hampshire representative Laurie Sanborn has stepped down as chairperson of a Commission examining the state’s charitable gaming industry. The Republican legislator and her husband, former state Senator Andy Sanborn, are currently being investigated over fraud allegations. The couple owns a bar and casino in Concord.
COVID-19 Relief Allegedly Used to Purchase Luxury Cars
Sanborn decided to resign from her post to avoid distractions from the good work they intend to do, according to House Speaker Sherm Packard. Her husband is being accused of fraudulently obtaining $844,000 in funding under a federal COVID-19 relief program facilitated by the Small Business Association.
The former senator allegedly spent a significant portion of the funds on luxury vehicles, including two Porsche cars valued at $181,000 and a Ferrari for his wife worth $80,000. The attorney general’s office has confirmed they’re investigating the matter.
Casino Licence at Risk
The Sanborns previously received approval to develop a larger venue near their Concord casino, but after the fraud allegations erupted, their casino licence is now at risk of permanent cancellation by the New Hampshire Lottery Commission.
Andy Sanborn denied the accusations, saying their actions were transparent and within the law.
Crown Resorts has decided to close one of its two gaming floors at its newly-opened Sydney property due to what it called “macro-economic challenges”. An Asian gaming expert said the decision came as a result of the ongoing crackdown on illegal gambling and junkets in China which has been the top source of high-spending VIP customers.
VIP Market Shrinking Due to China’s Junket Crackdown
Crown Sydney, which began operating in August 2022 under a conditional license, originally had two gaming floors both dedicated to high rollers but they will now be consolidated into just one gaming area due to lower-than-expected visitor numbers. The closure of the “Mahogany” floor resulted in nearly 100 job losses, though Crown stated that the affected employees would be transferred to its other properties in Australia.
Macau-based Asian gaming consultant Ben Lee said Crown Resorts Sydney could not rely on VIP players nowadays, especially with China’s ongoing crackdown on junkets. He also does not expect Australia’s VIP market to bounce back fast even though the gaming sector in South East Asia is continuing to recover.
Pokie Machines a Viable Option for Crown Sydney
Crown Sydney’s casino business may still thrive if the operator considers other options, such as setting up pokie machines, according to Dr. Charles Livingstone who works at Monash University as a gambling researcher.
Agreeing with Livingstone’s views, Lee said that while Crown Sydney is not allowed to run pokie machines at the moment, it’s not entirely impossible, given that the casino already offers electronic table games.
Italy has given the go-ahead to the Tax Delegation Law, paving the way for a major overhaul of the country’s gambling regulatory framework. This marks the latest effort by the Italian government to reorganize the sector after several failed attempts over the last decade mainly due to political fallouts and changes to government leadership.
New Player Protection Measures on the Way
Under the legislation, the government will introduce changes to gambling tax duties, with new player protection measures also set to be implemented. The move is aimed at promoting transparency and accountability within the industry.
The Italian government will adopt a phased approach to implementing the changes, with Phase 1 focusing on reforming the gambling concession model and putting in place unified laws regarding the operations of gambling venues across the country’s 20 administrative regions. The self-exclusion scheme will also be modified to better protect vulnerable customers.
Reform Decrees Expected in September
Italy’s gambling authority, the Agency of Customs and Monopolies (ADM), is also expected to examine existing stake limits and machine payouts to enhance player protection. Additionally, a ban on betting on underage sports competitions and a mandatory training for concessionaires, operators, and dealers, will be implemented.
The ADM is scheduled to submit a draft of the reform decrees by September 20, 2023.
Liquor & Gaming NSW, the gaming regulator in New South Wales (NSW), Australia has come under criticism after it was discovered that the agency did not provide relevant documents to an investigation into money laundering.
Regulator Did Not Provide 125 Docs for Project Islington
A call for papers initiated by Sydney MP Alex Greenwich found that the gaming regulator had not forwarded 125 key documents to the NSW Crime Commission when it conducted Project Islington, a probe into money laundering in pubs and clubs across NSW.
A final report on the investigation found that pokie machines were used by criminals to launder money, but they were not prosecuted due to a lack of information regarding their identities. The report recommended the implementation of cashless gaming cards to tackle the issue.
Following the discovery, Greenwich has cast doubt on Liquor & Gaming’s ability to properly investigate gaming-related crime. He called on Gaming and Racing Minister David Harris to review the regulator’s role and make changes where needed.
Gaming Minister Allays Concerns
Supporting Greenwich’s call for papers, Minister Harris said that the Minns government takes gambling reform seriously and is committed to minimizing harm and addressing money laundering.
Harris also highlighted further actions taken by the government so far in this area, including deploying more compliance officers and investigators under changes to the Liquor & Gaming NSW’s Hospitality and Racing organizational structure.