Blackstone Group receives VGCCC approval

The Victorian Gambling and Casino Control Commission (VGCCC) has approved the Blackstone Group as a suitable associate of Melbourne’s casino operator and its takeover of Crown as a major change in the state of the casino operator’s affairs. This comes after comprehensive probity investigations into the group and its associates.

In providing its approval, the Commission required Blackstone and Crown to agree to an extensive list of accompanying conditions and protections, which has occurred.

These conditions will apply on top of the strict requirements that currently apply to the casino operator. Key protections include:

• strengthening of Crown’s governance through the mandatory application of the ASX Corporate Governance Principles and recommendations, including that Crown Melbourne have a majority independent board of directors
• enhanced reporting of anti-money laundering and responsible gambling activities and additional auditing requirements on Crown
• new role requirements for Crown Melbourne’s CEO and key executives and non-interference requirements
• improved information sharing with law enforcement agencies
• that Blackstone cannot change its corporate structure and funding arrangements without VGCCC approval, meaning Blackstone will not be able to introduce new investors into the structure without VGCCC approval
• that Blackstone invests in, and maintains Crown Melbourne as the flagship casino in Australia.

All conditions are legally enforceable by the VGCCC.

“In reaching this decision, our specialist team put in many months of work investigating the suitability of the Blackstone Group to become an associate of the Melbourne casino operator,” said VGCCC Chairperson Fran Thorn.

“Our approval comes with stringent conditions which balance delivering stronger controls on the casino and ensuring it continues to be the flagship casino in Australia. We will take action should any of these conditions not be met by either Blackstone or Crown.”

Many of the conditions imposed align with recommendations from last year’s Royal Commission into the Casino Operator and Licence, which Crown Melbourne will still have to address.

Additionally, Crown Melbourne will still have to:

• operate under the appointed Special Manager
• undergo the Commission’s suitability assessment in 2024 in order to retain its licence.