WA government says Crown Perth a 'suitable entity' to operate casino, three years on from royal commission
The future of the state's only casino has been in the hands of the government since the final report of the Perth Casino Royal Commission was tabled in state parliament in 2022.
"I have found on advice from the Gaming and Wagering Commission, that Crown Perth is a suitable entity for operating a casino without any conditions or penalties," Racing and Gaming Minister Paul Papalia said.
The royal commission identified a series of failures by Crown Resorts in Perth, including facilitating money laundering, permitting criminal junkets to operate at the casino and failing to minimise casino gambling-related harm.
But the commission stopped short of calling for Crown to be stripped of its licence.
Instead, an independent monitor oversaw remediation activity at Crown for more than two years and handed its final report to the government in January.
It was one of 59 recommendations for the government to consider in the 1,000-page report.
So far, 32 have been completed, with 18 remaining to be implemented and a further nine waiting on legislative change to be enacted.
Mr Papalia had the power to remove Crown's license, apply a penalty of up to $100 million or enact strict conditions, but decided against any action.
When questioned whether Crown got off "scot-free", Mr Papalia said the remediation work has been enough.
"To say that there's not been any impost on them is not correct," he said.
"They have comprehensively changed their practices, they've had to implement new procedures, buy new equipment, apply new methods to ensure that they are complying with the recommendations.
"There are practices and procedures in place to address anti-money laundering and counter-terrorist funding measures that are required and also further measures to reduce the harm from gambling."
The royal commission also identified "numerous deficiencies" in WA's gaming regulator, the Gaming and Wagering Commission (GWC).
The list of recommendations made to the GWC included increasing penalties for regulatory offences and improving staffing and resourcing.
GWC Chair Gary Dreibergs said they now have more senior investigators and compliance officers.
"We now have a greater structure than we had previously," he said.
The GWC also issued directions to Crown to establish an electronic gaming machine scheme aimed at minimising gambling harm.
"True and embedded cultural change for any organisation like Crown Perth takes longer than two-and-a-half years," Mr Dreibergs said.
"We believe Crown can sustainably operate and embed those changes in the long term."
Crown Resorts agreed to an $8.9 billion takeover by private equity firm Blackstone in 2022.
Chair of Crown Resorts Perth John Van Der Wielen said the new ownership has been pivotal to improving oversight on criminal activity occurring under Crown's roof.
"They took on Crown knowing the issue and we knew how much it would take to fix and I think we're there," he said.
"I'm very confident now with the new independent board, completely new management team and being owned by the world's largest investor … we have the right moral compass in place."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
26 minutes ago
- News.com.au
Biocurious: Nerve repair champion Orthocell is taking it slow and steady in the US fast lane
Orthocell is staging the US rollout of its Remplir device, including 'pausing' enlisting too many distributors at once In Remplir's first US commercial usage, an Ohioan surgeon has deployed the device successfully More than 300 investors tuned into Orthocell's update last week For Orthocell (ASX:OCC) co-founder and CEO Paul Anderson, winning US Food & Drug Administration (FDA) marketing approval is more like a waypoint in the commercialisation path, rather than the endgame. In early April the FDA green-lit the company's flagship nerve repair product Remplir, exposing the company to a potential US$1.6 billion-a-year market. The Perth-based Orthocell can't be accused of assuming the biotech gods will serve up commercial success on a platter. Anderson says Orthocell was preparing its rollout strategy two years ago, including strategic tie-ups with distributors and laying the groundwork with opinion-leading surgeons. 'You don't just get an FDA approval and expected things to happen, you must be ahead of the game,' Anderson says. A mere three months post approval, Orthocell last week reported the first US commercial use of Remplir, by a surgeon in Ohio for a foot repair. It's not a race Paradoxically, management is on a strategic 'go-slow' in the fast-paced, make-or-break US market. Having appointed 14 east coast distributors, the company has 'paused' the rollout of any more until the current complement is properly trained and supported. Orthocell has also focused on the parties with what Anderson dubs the best 'domain knowledge' – those who can lead the company to the key hospitals and influential surgeons. 'You can't be scattergun,' Anderson says. 'We have 14 distributors to train and educate, with 100 reps on the ground. 'It's important that we provide them with the best education to support the brand.' Orthocell is also not ignoring the dull-but-important stuff of obtaining state-by-state licensing, navigating hospital procurement and onboarding day surgery hospitals (a key market). Stitching up the suturing market A collagen cuff derived from porcine material, Remplir envelops a severed nerve and helps the healing process. The device is also approved locally and in New Zealand, Canada, Singapore, Thailand and Hong Kong. Remplir is the only product that mimics the outside of the nerve, called the epineurium. Given that, the device requires few or no stitches: a technique unchanged since the late nineteenth century. 'We are actively redefining the way surgeons approach nerve repair,' Anderson says. 'Remplir is the only product in the market that enables surgeons to connect nerves, to protect them from scar tissue and compression; and cap nerves (for amputations).' Published studies show that patients with no voluntary movement had 85% of their function restored two years post-surgery. They also had improved strength and range of motion, which Anderson dubs 'outstanding outcomes that represent everything Remplir has to offer". To date, 206 surgeons in over 166 local and Singaporean hospitals have used Remplir, including plastic reconstructive, orthopaedic, vascular and neurological surgeons. Better bang for revenue buck Naturally, a medical product needs to be clinically superior – but that's not enough to ensure financial success in a well-competed sector. As yesterday's update from US drug entrant Botanix Pharmaceuticals (ASX:BOT) shows, too many clipping-the-ticket intermediaries can spoil the revenue story. 'Unlike other medtechs, Orthocell has no royalty liabilities and as we get into revenue growth, investors will reap the reward,' chairman John Van Der Wielen says. 'Royalty liabilities significantly erode margins in the sector." He adds that most device makers outsource their manufacturing, resulting in margin erosion. Orthocell's process is being kept in house. Revenue growth 'will take care of profits' Orthocell last week disclosed record June quarter revenue of $2.73 million, 23% higher than the March quarter. Revenue has risen for five consecutive quarters, at a compound annual rate of 9.5%. However, this annual run rate of circa $9 million doesn't include any US Remplir revenue. Striate sales in Australia, New Zealand and Singapore grew 28%. Management won't predict US revenues or when the company achieves profits – but expect blank ink on the bottom line in the 'near future'. 'Our expenses are growing at a lower rate than revenue, so the 'jaws' eventually will cross over and push the business into profit,' Van Der Wielen says. 'Cash burn is reducing, revenue is increasing and I believe we have more than enough cash to take the business forward.' Over time, Orthocell has invested $80 million in developing its product platform. The company does not have to incur more sunk costs, leaving a largely variable distribution cost base. 'Premium' product at a discount price Tapping Remplir's cost advantages, Orthocell is pricing the 'premium' product at just below those of US competitors. 'We are making it easy for the hospitals to order our product,' Anderson says. Orthocell has set its US pricing at parity with what's charged in other countries. This is a poltically sage gambit that should please the Commander in Chief as he ponders his 'most favoured nation' drug policy. While obtaining US reimbursement is the be-all-and-end-all for most drug makers, Anderson notes a capacious user-pays capacity for nerve repair. 'The take-home message is there is enormous revenue to be gained, even if you don't have US reimbursement,' Anderson says. That said, hospitals should fund Remplir by a mechanism that allocates a bundle of cash per procedure, rather than for specific items. Passionately Australian Around 300 investors tuned into Orthocell's webcast last week – no doubt reflecting the stock's 270% surge over the past 12 months. As it hones its US push, one thing Orthocell won't be doing is ceding its manufacturing base in Perth, which has the capacity for 100,000 units annually. Remplir's long shelf life means it's easy to ship elsewhere. 'We are passionate manufacturers of this product in Australia – and that's because it's the right place to make it,' Anderson says. 'We have the best raw material in the world and a great gross margin and economies of scale.' Judging from his chairman's utterances, Anderson can approach his end-of-year salary review with confidence. 'As a board, we could not be happier with what we have achieved over the last 12 months,' Van Der Wielen says.
News.com.au
26 minutes ago
- News.com.au
Childcare to join $50m housing project linked to James Packer
A $50m affordable housing development linked to Australian billionaire businessman James Packer has put a call out for childcare operators to join a Geelong project. The planned childcare centre in the northern Geelong suburb of Corio is expected to attract significant interest from childcare operators looking to get a foothold in one of Australia's fastest growing regional cities. The centre is positioned in the heart of the Edenville residential estate being developed by Sivasli Group and will be located at 26-34 Sharland Rd which is at the entrance to the estate. Corio is expected to see a significant ramp-up in residential development. Global second-hand fashion fave eyes big entry to Geelong Melbourne developer Deniz Sivasli's Edenville group is behind the project, backed by a consortium that includes former casino mogul James Packer and investment guru Joe Gersh. Sivasli Group is also planning a 282-home residential estate on the former Flinders Peak Secondary College site in Hendy St, while Cedar Woods Properties has a 400-lot estate on the drawing board after a $35m purchase in January of an 18.6ha Plantation Rd property. The childcare development is designed by Architecton and will accommodate 124 childcare places and feature a bespoke fit-out for the incoming early learning provider across 1771sq m of building area. CBRE's Australian Healthcare and Social Infrastructure team of Sandro Peluso, Jimmy Tat and Marcello Caspani-Muto are managing the expressions of interest leasing campaign. Mr Tat said childcare centres located within residential estates tend to have outstanding occupancy rates because of increased visibility and accessibility for families. 'What truly sets Corio apart is the absence of other childcare development applications within the catchment area, making it a unique and highly attractive option for operators,' Mr Tat said. 'With over 1100 children expected to be born and move into the area over the next five years, we anticipate the demand-to-supply ratio will reach 4.3:1 – a level that is widely considered very favourable for operators.' Mr Peluso said opportunities to develop childcare centres within residential estates were rare. 'Given the highly favourable demographics and strong demand in Corio, the vendor has decided to pursue a childcare development,' Mr Peluso said. 'We expect significant interest from established local childcare providers as well as new entrants looking to break into the suburb, given the robust demand and limited competition in the area.' The Edenville estate, which will deliver 107 new homes on the site of the former Rosewall Primary School, had a difficult journey to approval at Victoria's planning umpire with Geelong's council labelling it a 'significant overdevelopment'. The expressions of interest lease campaign will close late July.
News.com.au
26 minutes ago
- News.com.au
Brickie's slick Herne Hill renovation doubles home's value in four years
A premium renovation that almost doubled the value of an original Herne Hill home has scored the suburb's most expensive sale of the year. Buyers from Newtown paid $1.4m for the transformed four-bedroom house at 5 Knight Ave. The quality of its contemporary rear extension and refit added $662,0000 to the value of the 714sq m property in four years. Geelong Real Estate Co. listing agent Ricky Forte said the front bedroom was the only thing he recognised from when he last sold the retro solid brick home for $738,000 in 2021. An open-plan living zone featuring high raked ceilings, timber floors and a sleek kitchen is the centrepiece of the redesign. 'They had done a really comprehensive, beautiful renovation,' Mr Forte said 'All the people that went through it were from Newtown, Geelong West, Manifold Heights … predominantly, as always, it was the Geelong people that were happy to fight and stretch.' He said three of the four parties that made offers on the house were considering renovating their existing homes but had been put off by construction costs that could amount to $800,000 for something similar. The buyers paid $50,000 above the top asking price to secure the property. 'I felt like nobody wanted to renovate and if you can get one that everything's been done then you just sign on the dotted line as opposed to 18 months of hell,' Mr Forte said. The vendors called on their family's construction experience to pull off the renovation – one is a bricklayer while the other's father is a builder. Recycled brickwork features in a new covered entertainment area overlooking the home's landscaped back garden. The renovation also replaced the dated 1970s brown kitchen, added a fourth bedroom and a stylish ensuite bathroom. The sale is the third million-dollar result in the street, just one block away from the Newtown border. Mr Forte said the same house in the 3220 postcode would set you back to close to $2m, which made the sister suburb an attractive value proposition. 'I think it has given a lot of people confidence that you could do a big renovation in Herne Hill and get your money back,' he said. He said another buyer who recently paid $705,000 for an older house at 18 Ashbourne St, Herne Hill, was among those who inspected the Knight Ave property for inspiration. 'He's pulling his apart and is going to build it to the Knight Ave level and now that's given him the confidence that renovating at that level that the money is there,' he said.
