Crown (ASX:CWN) shares on watch after being found unsuitable to operate Sydney casino

The Crown (ASX:CWN) share price will be on watch on Wednesday after being found unsuitable to operate its Sydney casino…

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Crown Resorts Ltd (ASX: CWN) share price will be one to watch when it returns from its trading halt.

This morning the casino and resorts operator requested the halt ahead of the release of the Commissioner's report in relation to an inquiry into the suitability of Crown Resorts holding the licence for Sydney's Barangaroo casino.

What has happened?

This afternoon that final report was released and reveals that Commissioner Patricia Bergin has deemed Crown Resorts to be unsuitable to operate its new Sydney casino. This follows a public inquiry which uncovered allegations of money laundering.

According to the ABC, the final report states that Crown Resorts needs to make sweeping cultural changes if it wants to be considered a suitable operator in the future.

Though, it is worth noting that this final report remains a recommendation that requires final approval by the Independent Liquor and Gaming Authority (ILGA). But that is expected to be a formality at this point.

What was said?

According to the AFR, Commissioner Bergin labelled the company as arrogant and "quite unsuitable to hold a casino licence in New South Wales."

She said: "Any applicant for a casino licence with the attributes of Crown's stark realities of facilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction and pursuing commercial relationships with individuals with connections to triads and organised crime groups would not be confident of a positive outcome."

"It is obvious that such attributes would render an applicant quite unsuitable to hold a casino licence in New South Wales."

"These facts and the stark realities expressed so baldly may also suggest that it is obvious that the licensee is not suitable to continue to give effect to the Barangaroo Licence and that Crown is not suitable to be a close associate of the licensee," she added.

All eyes will be on the Crown share price when it returns to trade after this major setback. This could possibly be as soon as Wednesday morning.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Share Gainers

3 ASX 200 stocks smashing the benchmark this week

These three ASX 200 stocks are leading the charge this week. Here’s how.

Read more »

Two people tired and resting after sports race.
Broker Notes

Fundie rates 2 ASX 200 stocks in short-term pain but with long-term gain potential

Blackwattle Investment Partners sees these 2 ASX 200 stocks as worthy of a buy and hold strategy.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why A2 Milk, EOS, GQG, and Mineral Resources shares are racing higher today

These shares are ending the week strongly. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Megaport, Pilbara Minerals, Vysarn, and WiseTech shares are falling today

These shares are ending the week in the red. But why?

Read more »