Crown Resorts has been given two years to save its flagship Melbourne casino by addressing a litany of wrongdoing after being found unfit to hold a gaming license.
In an unprecedented step to rein in Crown, a so-called special manager has been appointed to supervise the company, with the power to veto board decisions and unfettered access to all areas of the casino and its accounts, the Victorian state government said Tuesday after an independent inquiry headed by former judge Ray Finkelstein.
Crown shares jumped 11% in Sydney trading after the company avoided the worst possible outcome from Finkelstein’s Royal Commission -- an immediate loss of the Melbourne license -- which would have put the company’s entire future in doubt. Crown could, however, be stripped of its permit after two years unless it satisfies the government that it has sufficiently changed. “This will be a tough test to satisfy,” Finkelstein said in his report.