The Crown Resorts Inquiry In NS Wales On Hold

The Crown Resorts efforts to build a new casino in New South Wales may have hit a brick wall following an ongoing court appeal. The operators’ inquiry In New South Wales to determine it can hold a gaming license in the state has been put on hold due to the pending court case. 

The company’s business practices have been put under scrutiny by the NSW Independent Liquor and Gaming Authority (ILGA). The ILGA is listening to witness testimony in regards to the company’s business approach practices. The authority is looking at Crown’s involvement in money laundering as well as its dealings with organized crimes.

Last week, the ILGA announced that the hearings were temporarily put on hold following an appeal by New South Wales Attorney General Mark Speakman. The appeal concerns a recent New South Wales Court decision that concludes the ILGA doesn’t possess the power of a royal commission, and as such doesn’t have the legal authority to ask for specific documents. 

The entire case revolves around The Crowns $1.5 billion casino project in Sydney. Although Crown continues to build its Sydney casino, there are strong indications that the company could be stopped from operating the resort. 

The Appeal

Melco Resorts, which owns close to 10 percent stake in Crown Resorts, filed a lawsuit seeking a court injunction of the inquiry. They argue that the ILGA doesn’t have the right to demand documents protected by lawyer-client privileges. 

The New South Wales Supreme Court has ruled that the ILGA doesn’t possess the powers under Section 17 (1) of the state’s Royal Commission Act. The Act provides the regulatory framework for agencies investigating organized crime and corruption.