By Paulina Duran
SYDNEY (Reuters) – Australian takeover target Crown Resorts has committed to end international gambling tours – or “junket” operations – and switch to cashless operations in its casinos, the gaming regulator of the country’s biggest state said Thursday.
After being deemed unsuitable for a gambling licence in New South Wales state in February when an inquiry found Crown had enabled money laundering on its premises, the Melbourne-based casino operator has emerged as the target of a bidding war.
Star Entertainment Group proposed an all-stock buyout this week of its larger rival Crown that values it at A$9 billion ($6.96 billion), taking on private equity giants Blackstone and Oaktree Capital Group for control of the troubled company.
Australia’s New South Wales state gaming regulator, which would need to approve any potential merger between the two casinos, disclosed on Thursday it had held discussions with Star which had also agreed to end junket tours.
The Sydney-based casino suitor had also agreed to “work with the authority in moving towards cashless gaming, using a card linked to identity and to a recognised financial institution,” the regulator said.
“Any changes to Crown’s ownership structure, including takeover or merger proposals, require the authority to consider a range of issues including … how a merged entity would operate, and the extent to which any existing agreements with Crown would need to be reviewed,” the NSW Independent Liquor and Gaming Authority chair Philip Crawford said.
Star’s approach this week follows buyout giant Blackstone Group earlier upping its all-cash indicative bid to A$8.4 billion, and Oaktree’s proposal to bankroll an A$3 billion buyback of Crown’s founder’s stake to remove a regulatory concern.
The regulator had also entered into an agreement with CPH, a vehicle owned by founder and 37% owner James Packer, to address issues around its influence and control, it added, without giving details.
(Reporting by Paulina Duran and Renju Jose in Sydney; Editing by Christopher Cushing and Muralikumar Anantharaman)
