Latest news with #PaulPapalia
AU Financial Review
08-07-2025
- Business
- AU Financial Review
Blackstone regains total control of Crown with WA casino green light
The West Australian government has deemed Crown Resorts suitable to maintain its Perth casino licence without any conditions or penalties in a decision that returns the last of the company's gambling precincts to the control of US private equity giant Blackstone. Racing and Gaming Minister Paul Papalia said he was satisfied Crown Perth had taken sufficient steps to overhaul its operations after a 2022 royal commission uncovered evidence of money laundering and junkets with criminal links.
ABC News
08-07-2025
- Business
- ABC News
WA government says Crown Perth a 'suitable entity' to operate casino, three years on from royal commission
Crown Perth has been handed a lifeline by the state government and will keep its gaming licence without penalty or conditions, three years after a Royal Commission found it unfit to hold a licence in WA. 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."
The Age
08-07-2025
- Business
- The Age
Final regulatory leash removed from Crown's neck in Perth
The final regulatory leash has been removed from Crown's neck in Australia after the WA government handed back the casino and resorts giant autonomy over its operations. Racing and Gaming Minister Paul Papalia also decided against further punitive action against Crown, saying he was comfortable the business had taken appropriate action to deal with the money laundering, counter-terrorism and problem-gambling issues that plunged it into crisis nationwide following investigations by Nine Newspapers. 'I have found that Crown is a suitable entity for operating a casino without conditions or penalties. And that finding was taken to the cabinet yesterday and endorsed by the cabinet,' he said. Papalia's decision means Crown Perth is free to operate without the intensive government oversight that had been in place since the royal commission report was finalised in 2022. Papalia defended not using a financial penalty to punish Crown, which is now owned by private investment firm Blackstone, and downplayed the activities unearthed by the royal commission, saying 'there was never any evidence of direct money laundering activity of the nature that you witnessed in Melbourne.' 'What there was, was potential for money laundering to have been enabled, and potential for counter-terrorism or terrorism finances to have been transacted,' he said. Following Nine Newspapers' reports the Victorian, New South Wales and WA governments conducted separate inquiries, finding the casino had allowed money laundering to take place. The WA report found Crown Perth had facilitated money laundering, failed to investigate suspicions of money laundering, permitted junkets with links to criminals to operate at the casino and failed to minimise gambling-related harm caused by electronic gaming machines. It also lashed the former Crown Perth board for failing in its oversight of the business.
Sydney Morning Herald
08-07-2025
- Business
- Sydney Morning Herald
Final regulatory leash removed from Crown's neck in Perth
The final regulatory leash has been removed from Crown's neck in Australia after the WA government handed back the casino and resorts giant autonomy over its operations. Racing and Gaming Minister Paul Papalia also decided against further punitive action against Crown, saying he was comfortable the business had taken appropriate action to deal with the money laundering, counter-terrorism and problem-gambling issues that plunged it into crisis nationwide following investigations by Nine Newspapers. 'I have found that Crown is a suitable entity for operating a casino without conditions or penalties. And that finding was taken to the cabinet yesterday and endorsed by the cabinet,' he said. Papalia's decision means Crown Perth is free to operate without the intensive government oversight that had been in place since the royal commission report was finalised in 2022. Papalia defended not using a financial penalty to punish Crown, which is now owned by private investment firm Blackstone, and downplayed the activities unearthed by the royal commission, saying 'there was never any evidence of direct money laundering activity of the nature that you witnessed in Melbourne.' 'What there was, was potential for money laundering to have been enabled, and potential for counter-terrorism or terrorism finances to have been transacted,' he said. Following Nine Newspapers' reports the Victorian, New South Wales and WA governments conducted separate inquiries, finding the casino had allowed money laundering to take place. The WA report found Crown Perth had facilitated money laundering, failed to investigate suspicions of money laundering, permitted junkets with links to criminals to operate at the casino and failed to minimise gambling-related harm caused by electronic gaming machines. It also lashed the former Crown Perth board for failing in its oversight of the business.
West Australian
04-07-2025
- Business
- West Australian
The TAB: Papalia concedes ‘no value in purchasing it,' as government keeps door open on future sale
After multiple unsuccessful attempts, the state government has reiterated it does not currently plan to sell the TAB but is keeping the door open for future opportunities, as Minister Paul Papalia concedes that 'no one can see a value in purchasing it.' After plans to privatise the betting agency were first announced in 2015 by the former Barnett government, and legislation was passed under the McGowan government in 2019 to enable the sale, the government has spent years trying to find a suitable buyer. Multiple bids, including offers reportedly close to $1 billion, fell through, leading the government to scrap the sale in 2022. During budget estimates on Thursday, Minister Paul Papalia was asked by the opposition if the government would again pursue the privatisation of the TAB in this current term. 'In short, no,' Mr Papalia responded. 'That is not to say I am not out there or I would not be receptive to an approach for a sale, but there has been no interest and I do not anticipate there will be, not because we do not want to sell it or that we would categorically refuse, but probably because no-one can see a value in purchasing it.' Mr Papalia said the sale of the TAB would have secured the long-term future of the racing industry; however, the plan collapsed amid falling returns following the COVID pandemic. 'In our first term of government, we tried to sell the TAB. At that point, the TAB was of reasonable value,' he said. 'It was our ambition to sell the TAB and create an infrastructure fund to allow in perpetuity funding for the industry's requirements for upgrades and maintenance of facilities, and also return a relatively small profit to the state as a consequence of the sale. 'That fell through. COVID changed things. Prior to and post-COVID, there has been an enduring diminishing return from racing and gambling.' This financial year, the State Government is set to spend $57.1 million on racing and wagering in WA, including $38.6 million dedicated to improving and maintaining wagering systems. Shadow Racing and Gaming Minister Lachlan Hunter believes the government should be working harder to make the TAB more viable for a prospective buyer. 'We remain focused on what delivers the best outcomes for racing. What we won't support is letting the TAB wither on the vine through inaction,' Mr Hunter said. 'Instead of trying to justify inaction, the government should be working to strengthen the TAB's position—investing in digital platforms, offering a competitive product, and providing clarity about its future. 'The industry deserves leadership, not defeatism.' Despite not being able to find a suitable buyer over several years, the TAB still appears to be a cash cow for the state. 'The TAB generates hundreds of millions of dollars and is running efficiently, generating revenue for industry and taxpayers,' Mr Papalia told the West Australian.
