Billionaire James Packer’s Crown casino in spotlight as triad claims probed in Australia
- Inquiry to assess if Crown Resorts is fit to run Sydney resort
- James Packer, Melco’s Lawrence Ho Yau-lung are on list of witnesses
Crown Resorts billionaire James Packer has endured blow upon blow for more than three years: a bruising clash with Chinese authorities and at least two aborted deals with suitors.
Now the 52-year-old faces another potential ordeal. The first set of public hearings starts Monday to consider media reports that Crown used agents linked to drug gangs, human traffickers and money launderers to attract wealthy Chinese gamblers to its casinos.
Ultimately, the probe will assess if Crown should keep its license to run a A$2.2 billion (US$1.5 billion) Sydney harbourside gaming development that Packer has championed for almost a decade. His 37 per cent stake in Crown, a company with a market value of A$8 billion, is his single-biggest investment.
With that centrepiece resort due to open late this year, the probe is badly timed for Packer and Crown. The investigation will give a fresh airing to the damaging allegations last year that are still deterring big-spending gamers from playing at Crown’s casinos in Melbourne and Perth – the very customers the firm will also need in Sydney.
At the same time, coronavirus-related travel restrictions in Australia on visitors from China are weighing on gambling flows. Even before the outbreak, turnover from high rollers at Crown in the six months to December fell 34 per cent.
