Crown VIP gambling a “failure of culture,” Blackstone seeks to raise Crown stake

Australian casino operator Crown Resorts suffered from “a failure of culture” that led to its VIP gambling compliance shortcomings, according to a long-time member of its board of directors.

Monday saw Crown director Andrew Demetriou take his turn in the hot seat at 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 slated to open in December.

Witnesses who appeared before the inquiry earlier this month have revealed a level of seemingly willful cluelessness on the part of Crown’s board and senior managers regarding the company’s skirting of VIP gambling compliance obligations. Demetriou (pictured) said Tuesday that the board’s lack of awareness was “not a failure of our processes, but it speaks more of a failure of culture.”

ILGA commissioner Patricia Bergin suggested Demetriou was being overly charitable regarding Crown’s actions, noting that the company has yet to shut down shell companies that were set up to help Chinese high-rollers move money off the mainland to Crown casinos, despite these accounts having been flagged by regulators over a year ago.