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

A man looking at his laptop and thinking.
Share Market News

5 things to watch on the ASX 200 on Tuesday

It looks set to be a tough session for local investors today. But why?

Read more »

Man standing on rock next to turquoise salt lagoon.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors enjoyed a great start to the trading week today.

Read more »

a business person checks his mobile phone outside a Wall Street office with an American flag and other business people in the background.
Share Market News

ASX 200 stocks I'm buying and selling BEFORE the US presidential election outcome

The ASX 200 could see some big moves on Wednesday in the wake of a huge US election.

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 Amcor, Boss Energy, Brickworks, and Mineral Resources shares are tumbling today

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

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Share Gainers

Why Austal, Breville, Telix, and Westgold shares are pushing higher today

These shares are starting the week positively. But why?

Read more »

Multiple percentage signs in the palm of a man's hand.
Share Market News

What's going to happen with interest rates tomorrow? Here is CBA's take

CBA expects some 'shifts in language' from the Reserve Bank on interest rates tomorrow. Here's why.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

Sad shopper sitting on a sofa with shopping bags.
Opinions

Is the Wesfarmers share price a buy? Here's my view

Is the Bunnings owner a buy at this lower valuation?

Read more »