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Laundering fears halt landmark Sydney casino opening

·1-min read
Authorities said admissions of money laundering meant they were "not comfortable" with Crown beginning gambling operations at a new casino in Sydney

Laundering fears halt landmark Sydney casino opening

Authorities said admissions of money laundering meant they were "not comfortable" with Crown beginning gambling operations at a new casino in Sydney

A multi-billion-dollar casino in Sydney will not be allowed to open as planned next month after admissions of money laundering prompted regulators to step in Wednesday.

New South Wales gambling regulators said there were concerns that profits from drugs, child sexual exploitation, people trafficking and terrorism may have been laundered through operator Crown Resorts, one of Australia's largest gambling and entertainment groups.

Authorities said they were as a result "not comfortable" with operations beginning at the gleaming 75-storey tower on Sydney's waterfront.

Trading in Crown shares were halted on the Australian Securities Exchange after a company lawyer told an inquest that illicit funds were "probably" laundered through two high roller accounts through the company's operations in Perth and Melbourne.

In a statement, the troubled company -- long run by media magnate James Packer -- said it would not attempt to open gambling operations in Sydney before February 2021.

"Crown will continue to focus on opening the non-gaming operations at Crown Sydney... in the absence of the commencement of gaming operations," the company said .

Crown could yet be barred from operating the casino entirely when a New South Wales commission investigation wraps up by February.

Moody's Investors Service analyst Maadhavi Barber said this week's ruling "highlights the potential severity" of the commission's findings "and the risk of meaningful sanctions and/or limitations on Crown's ownership and operations".

Crown insists it has fixed shortcomings and reformed its risk management operations.

arb/al/oho/fox