Crown Resorts Announces Plan to Cut Up to 1,000 Jobs
Crown Resorts recently received approval from the NSW Independent Casino Commission to retain its Sydney license.
Owned by Blackstone, Crown Resorts is planning to cut up to 1,000 jobs due to decreasing tourist numbers and gaming restrictions affecting its operations in Melbourne and Sydney.
Crown Resorts CEO Ciaran Carruthers stated, “The challenges faced by Crown are a result of reduced foreign tourism, a decline in local city workers, and gaming limitations in Sydney and Melbourne.”
Crown’s website mentions that it currently employs over 20,000 people, meaning the layoffs will impact approximately 5% of its workforce.
This decision comes as state governments tighten their monitoring of casinos due to concerns about money laundering.
In mid-2022, Blackstone acquired Crown Resorts for $8.9 billion as the company faced significant penalties after failing to comply with anti-money laundering laws.
Crown Resorts Retains Sydney Licence
Last week, Crown Resorts announced that the New South Wales Independent Casino Commission (NICC) deemed its Sydney operations suitable to keep its license.
“We view holding a casino license as both a privilege and a responsibility that we take very seriously. We are dedicated to building trust with our communities and focusing on our goal of becoming a benchmark for integrated resorts,” said Mr. Carruthers.
“We are committed to Crown’s cultural transformation, compliance, and ensuring we are the safest gambling venue in Australia, providing a fun and enjoyable environment for our guests,” he added.
The NICC’s decision followed a similar endorsement from the Victorian Gambling and Casino Control Commission for Crown Melbourne to continue its operations.
Despite significant findings, the Finkelstein Royal Commission recommended Crown to operate under strict independent oversight for two years, indicating its potential for transformation to benefit Victoria.
The investigation revealed various shortcomings, including Crown’s association with a casino junket operator linked to organized crime and failure to monitor transactions adequately.
Crown Resorts faced a $700 million penalty, with $450 million paid to AUSTRAC, for the breaches.
Meanwhile, Star Entertainment, owner of Star Casino, is awaiting a decision from NICC on whether it can retain its Sydney license, also due to compliance failures.
Notably, Anne Ward has been appointed as the new chairman of Star Entertainment’s board following David Foster’s resignation.
