The future of Crown Resorts is uncertain, plagued by swirling regulatory investigation coupled with the effects of the pandemic, the casino resorts auditor is warning on the ongoing concern.
Auditor KPMG warns that further cancellations or suspension of Crown gaming license could trigger the company to fail to pay its debt resulting in civil penalty proceeding can be launched against Crown.
Crown Perth and Crown Melbourne are currently under investigation by Australia’s financial intelligence agency (AUSTRAC). The agency wants to determine whether Crown Resorts complied with the country’s Anti-Money Laundering and Counter-Terrorism Financial Act.
Auditor KPMG delivered his analysis during Crown Resort 2021 reporting to shareholders. KPMG noted that the opening of $1.6 billion Crown Sydney was scheduled in the New Year celebration. However, New South Wales pulled Crown away from the license.
New South Wales withheld the license after regulators found Crown guilty of facilitating money laundering, exposing staff risk of detention, and doing business with individuals connected to crime groups.
Another inquiry in Victoria found Crown guilty of tax evasion. Crown Melbourne license now hangs on the balance.
After losing its Sydney license, Crown embarked on reformation efforts, including a major reshuffle of top leadership to align with regulators’ recommendations.
Meanwhile, Crown is negotiating a waiver with its lender before it recommences refinancing the facilities. It has also secured a $184 million debt facility commitment to repay its bonds if needed.