Australian casino operator Crown Resorts’ reputation took further hits on Tuesday as its largest shareholder James Packer blamed a medical condition for threats he made to an unidentified businessman.
On Tuesday, Packer appeared via video link before the New South Wales Independent Liquor & Gaming Authority (ILGA) inquiry into Crown’s suitability to hold a state gaming license for its Crown Sydney property, which is scheduled to open in mid-December. Packer, based on his 36% stake in Crown, is also being judged on his suitability to hold an NSW gaming license.
Tuesday’s testimony centered on Packer’s failed 2015 effort to take Crown private and discussions he had with an unidentified private equity group that Packer wanted to put up AU$1.5b toward acquiring the Crown shares he didn’t already own. The hedge fund reportedly offered only AU$400m subject to due diligence.
The bulk of the discussion regarding Packer’s communications with a representative of the hedge fund were conducted away from the cameras. When the public testimony resumed, ILGA Commissioner Patricia Bergin asked Packer whether the nature of his communications was “totally unacceptable for a director of a licensee of a casino,” to which Packer replied in the affirmative.