Crown Resorts tried to play the pity card in Victoria and failed. The casino operator has already demonstrated its inability to act as a good corporate citizen in New South Wales (NSW) and could face similar problems in Victoria and other states. Perhaps seeing the writing on the wall, Crown has written a letter to the Minister for Consumer Affairs, Gambling and Liquor Regulation, Melissa Horne, warning that any adverse action taken against it will only lead to unfavorable circumstances for employees and creditors.
Crown seeks sympathy
Authorities in NSW have already decided that Crown, with its history of money laundering and car hacking, does not deserve to be licensed in the state. The company may have been trying to avert a new attack from the state of Victoria when it sent a letter to the Crown warning that any further suspension could result in a financial default, which in turn would result in forced redundancies. At least A$600 million (US$448 million) is reportedly at stake.
The letter reads in part, "Crown directly or indirectly employs 11,597 people, more than 11,000 of whom are below management level, and almost 5,000 of whom are employees directly affected by EA. Most employees are not plugged in and were not directly or indirectly involved in the Old Crown shut down, and because of COVID-19, they suffer significant uncertainty. They will suffer from even more uncertainty if [the default event] happens."
The investigation in Victoria is led by that state's royal commissioner Ray Finkelstein, and with regard to Minister Horne, he concluded that the Crown was trying to obstruct the investigation. Given Crown's penchant for subterfuge, this should come as no surprise. The letter added: "Crown's failure is not in the public interest. Perhaps Crown management should have thought about this years ago.
Crown is trying to improve its image
While the popular Danish operator https://bedstespiludenomrofus.com/ is gaining momentum and preparing to enter the Australian market, Crown is trying to show regulators and government officials that it is doing well. Over the past year, the company has already issued layoffs to several senior executives and severed business relationships with some organizations that were also considered questionable. Later this week it will hold a forum for senior staff and some "up-and-coming executives" to discuss Crown and where it is heading as the company tries to improve its corporate image. Crown's new managing director and chief executive Steve McCann hopes that by the time the meeting is over, the company will have a "roadmap of its future state".
The Victorian investigation, one of two currently underway, is due to be completed in the coming weeks. However, the investigation has been extended and McCann intends to show that the company has realized the error of its ways. He hopes he will be able to turn the tide and put Crown right, but he has a lot of work to do. Finkelstein and the Crown Commission will make a final decision on his efforts no later than 15 August.
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