{"id":185323,"date":"2021-09-09T11:10:47","date_gmt":"2021-09-09T18:10:47","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=185323"},"modified":"2021-09-09T15:13:11","modified_gmt":"2021-09-09T22:13:11","slug":"crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/","title":{"rendered":"Crown Resorts at Future Risk of Default, Auditor Warns on Going Concern"},"content":{"rendered":"

Auditor KPMG has said the various regulatory investigations swirling around embattled casino giant Crown Resorts, coupled with the pandemic effects, have created \u201cmaterial uncertainties\u201d about whether the operator can continue as a going concern.<\/p>\n

\"Crown
The Crown’s entrance is pictured above. After Sydney, Crown Melbourne’s license is now at risk. (Image: Michael Dodge\/AAP<\/em>)<\/figcaption><\/figure>\n

The auditor warned that further cancellations or suspensions of Crown\u2019s gaming licenses in Australia could cause the company to default on some of its debts.<\/p>\n

\n

Meanwhile, KPMG said Australia\u2019s financial intelligence agency AUSTRAC was \u201cvery likely to commence civil penalty proceedings against Crown Melbourne and Crown Perth,\u201d which it expects to result in the casinos paying \u201csignificant civil penalties.\u201d<\/p>\n<\/div>\n

The two casinos are currently under investigation by AUSTRAC\u2019s Enforcement Team. That is examining potential non-compliance with the country\u2019s Anti-Money Laundering and Counter-Terrorism Financing Act, and Anti-Money Laundering and Counter-Terrorism Financing Rules.<\/p>\n

Bad Start Goes Downhill Fast<\/strong><\/h2>\n

The auditor\u2019s sobering analysis was delivered in Crown Resorts 2021 annual report to shareholders, published Thursday.<\/p>\n

This year was supposed to start brightly for the casino giant, which planned to open its US$1.6 billion Crown Sydney just in time for the New Year celebrations. But its gaming license for Sydney was pulled by the state of New South Wales.<\/strong><\/p>\n

That\u2019s after a regulatory investigation found Crown was guilty of\u00a0\u201cfacilitating money laundering, exposing staff to the risk of detention in a foreign jurisdiction, and pursuing commercial relationships with individuals with connections to Triads and organized crime groups.\u201d<\/p>\n

A similar inquiry in Victoria has added tax evasion to the list of complaints. Now Crown\u2019s Melbourne license also hangs in the balance<\/a>. The flagship Melbourne property generates up to 75 percent of Crown\u2019s profits.<\/p>\n

Damage Limitation <\/strong><\/h2>\n

Crown embarked on a series of reforms after losing its Sydney license, including a major leadership reshuffle as it sought to realign its corporate culture with regulators\u2019 recommendations.<\/p>\n

Crown has apologized for the failings identified through these various regulatory processes, and we are committed to doing everything in our power to redress them and earn back confidence and trust,\u201d<\/strong> wrote the board in the annual report as it tried to reassure investors.<\/p><\/blockquote>\n

The board also told shareholders it had negotiated waivers with its bondholders that would provide “a period of time to negotiate with lenders or otherwise refinance the facilities.”<\/p>\n

Additionally, it secured an extra A$250 million (US$184 million) debt facility commitment with lenders, which could be used to repay its bonds, if necessary.<\/p>\n

Crown Resorts CEO Steve McCann said earlier this month that the company could lease out its properties to other operators should they lose their gambling licenses, although he added this was just one of \u201ca range of scenarios.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Auditor KPMG has said the various regulatory investigations swirling around embattled casino giant Crown Resorts, coupled with the pandemic effects, have created \u201cmaterial uncertainties\u201d about whether the operator can continue as a going concern. The auditor warned that further cancellations or suspensions of Crown\u2019s gaming licenses in Australia could cause the company to default on […]<\/p>\n","protected":false},"author":36,"featured_media":185324,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\nCrown Resorts at Future Risk of Default, Auditor Warns on Going Concern<\/title>\n<meta name=\"description\" content=\"Crown resorts may not continue as a going concern, KMPG warns in annual report, as company could default on loans if it loses licenses.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Crown Resorts at Future Risk of Default, Auditor Warns on Going Concern\" \/>\n<meta property=\"og:description\" content=\"Crown resorts may not continue as a going concern, KMPG warns in annual report, as company could default on loans if it loses licenses.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-09T18:10:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-09-09T22:13:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/crowny.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1356\" \/>\n\t<meta property=\"og:image:height\" content=\"668\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Philip Conneller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@casinoorgphilc\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Philip Conneller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/\",\"url\":\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/\",\"name\":\"Crown Resorts at Future Risk of Default, Auditor Warns on Going Concern\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/crowny.jpg\",\"datePublished\":\"2021-09-09T18:10:47+00:00\",\"dateModified\":\"2021-09-09T22:13:11+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b\"},\"description\":\"Crown resorts may not continue as a going concern, KMPG warns in annual report, as company could default on loans if it loses licenses.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/crowny.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/crowny.jpg\",\"width\":1356,\"height\":668,\"caption\":\"After Sydney, the Crown Melbourne (pictured) license is now at risk. (Image: Michael Dodge\/AAP)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Asia Pacific Gaming\",\"item\":\"https:\/\/www.casino.org\/news\/asia-pacific-gaming\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Crown Resorts at Future Risk of Default, Auditor Warns on Going Concern\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b\",\"name\":\"Philip Conneller\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-5-1-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-5-1-96x96.png\",\"caption\":\"Philip Conneller\"},\"description\":\"In Philip Conneller\u2019s eight years with Casino.org, he has covered the gaming industry from Las Vegas to Macau and everything in between. He currently focuses his coverage on gaming law, white-collar crime, global money laundering, tribal gaming, politics, and regulation. Philip was the original features editor for poker\u2019s Bluff Magazine and editor for Bluff Europe, which he helped launch. His writing has also been featured in ESPN, Forbes, Time Out, The Sun, and The Daily Star, as well as iGaming Business, eGaming Review, and numerous other industry news and tech websites. His news stories for Casino.org\/news have been linked by The Washington Post, The Daily Mail, People Magazine, and Jimmy Fallon's Tonight Show, among many others. Philip once won $20,000 with 7-2 off-suit. He has been reprimanded for unwittingly playing Elton John\u2019s piano on two separate occasions on both sides of the Atlantic. He became a writer because he is a lousy pianist. Philip lives outside London with his wife and children, where he spends his time agonizing about Arsenal FC. Contact Philip at philip.conneller@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/philip-conneller\",\"https:\/\/www.linkedin.com\/in\/philip-conneller-1495a48\/?originalSubdomain=uk\",\"https:\/\/x.com\/casinoorgphilc\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/phillip-conneller\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Crown Resorts at Future Risk of Default, Auditor Warns on Going Concern","description":"Crown resorts may not continue as a going concern, KMPG warns in annual report, as company could default on loans if it loses licenses.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Crown Resorts at Future Risk of Default, Auditor Warns on Going Concern","og_description":"Crown resorts may not continue as a going concern, KMPG warns in annual report, as company could default on loans if it loses licenses.","og_url":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2021-09-09T18:10:47+00:00","article_modified_time":"2021-09-09T22:13:11+00:00","og_image":[{"width":1356,"height":668,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/crowny.jpg","type":"image\/jpeg"}],"author":"Philip Conneller","twitter_card":"summary_large_image","twitter_creator":"@casinoorgphilc","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Philip Conneller","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/","url":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/","name":"Crown Resorts at Future Risk of Default, Auditor Warns on Going Concern","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/crowny.jpg","datePublished":"2021-09-09T18:10:47+00:00","dateModified":"2021-09-09T22:13:11+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b"},"description":"Crown resorts may not continue as a going concern, KMPG warns in annual report, as company could default on loans if it loses licenses.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/crowny.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2021\/09\/crowny.jpg","width":1356,"height":668,"caption":"After Sydney, the Crown Melbourne (pictured) license is now at risk. (Image: Michael Dodge\/AAP)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/crown-resorts-at-future-risk-of-default-auditor-warns-on-going-concern\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Asia Pacific Gaming","item":"https:\/\/www.casino.org\/news\/asia-pacific-gaming\/"},{"@type":"ListItem","position":3,"name":"Crown Resorts at Future Risk of Default, Auditor Warns on Going Concern"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b","name":"Philip Conneller","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-5-1-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-5-1-96x96.png","caption":"Philip Conneller"},"description":"In Philip Conneller\u2019s eight years with Casino.org, he has covered the gaming industry from Las Vegas to Macau and everything in between. He currently focuses his coverage on gaming law, white-collar crime, global money laundering, tribal gaming, politics, and regulation. Philip was the original features editor for poker\u2019s Bluff Magazine and editor for Bluff Europe, which he helped launch. His writing has also been featured in ESPN, Forbes, Time Out, The Sun, and The Daily Star, as well as iGaming Business, eGaming Review, and numerous other industry news and tech websites. His news stories for Casino.org\/news have been linked by The Washington Post, The Daily Mail, People Magazine, and Jimmy Fallon's Tonight Show, among many others. Philip once won $20,000 with 7-2 off-suit. He has been reprimanded for unwittingly playing Elton John\u2019s piano on two separate occasions on both sides of the Atlantic. He became a writer because he is a lousy pianist. Philip lives outside London with his wife and children, where he spends his time agonizing about Arsenal FC. Contact Philip at philip.conneller@casino.org.","sameAs":["https:\/\/muckrack.com\/philip-conneller","https:\/\/www.linkedin.com\/in\/philip-conneller-1495a48\/?originalSubdomain=uk","https:\/\/x.com\/casinoorgphilc"],"url":"https:\/\/www.casino.org\/news\/author\/phillip-conneller\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/185323"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=185323"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/185323\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/185324"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=185323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=185323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=185323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}