Casino operator Melco Resorts & Entertainment (MRE) has filed a legal challenge of an Australian gambling regulator’s authority to determine whether MRE is a suitable investor in Aussie rival Crown Resorts.
On Wednesday, The Australian reported that MRE had filed a legal challenge with the New South Wales Independent Liquor and Gaming Authority (ILGA), arguing that the regulator is exceeding its authority via its inquiry into MRE’s plan to buy a 20% stake in Crown. MRE’s legal hail mary will be heard in a hearing with the NSW Supreme Court on Thursday.
To refresh your memory, MRE boss Lawrence Ho made a deal with Crown’s largest shareholder James Packer last May to buy 20% of the Australian casino operator. That deal was ‘paused’ that August after only half of the Crown shares had changed hands to “allow more time for the relevant Australian regulatory processes to be completed.”
Those regulatory processes, which included the ILGA probe, were sparked after Crown’s dealings with Asian VIP gamblers were lambasted in an episode of 60 Minutes Australia. It later became known that Lawrence Ho (pictured) sat on the boards of some companies with which Crown was forbidden to associate due to their connection to Lawrence’s father Stanley, who has been linked (rightly or wrongly) to Hong Kong triad activity.