Australia: Government approves the acquisition of Crown Resorts by Blackstone Group

After extensive investigations in multiple jurisdictions, the Western Australian (WA) government has released a press release confirming that Minister Buti has given approvals regarding Blackstone's proposed and future shareholdings of Burswood Limited and securities over the casino gaming license, site, and resort complex, in accordance with the Burswood State Agreement and Casino Control Act respectively.

Minister Buti has directed Blackstone that the State expects that the Burswood, Crown, and Blackstone entities will conduct themselves in accordance with the highest standard of governance and operations. This includes that the Burswood, Crown, and Blackstone entities invest in, and maintain, Crown Perth, and strengthening of Crown's governance through the application of the ASX Corporate Governance Principles and Recommendations.

The approvals have been granted subject to various conditions, including:

• enhanced reporting of anti-money laundering and responsible gambling activities and additional auditing requirements on Crown;
• non-interference requirements to prevent Blackstone's institutional investors from involvement in the day-to-day operations of Perth's Crown Casino;
• obligation to report any investigations by any Australian or overseas regulators; and
• that Blackstone cannot change its corporate structure and funding arrangements without providing prior notice and relevant approvals. This means Blackstone will not be able to introduce new investors into the structure without approval.

Now that the necessary approvals have been granted from regulators in WA, Victoria and New South Wales, approval can be sought from the Federal Court of Australia.

Racing and Gaming Minister Tony Buti said: "The State Government has already made significant improvements to the regulatory regime and remains committed to establishing an even tougher regulatory and governance framework to ensure whoever owns or runs Perth's casino is held to account."

While, Gaming and Wagering Commission Chair, Lanie Chopping, highlighted Blackstone's extensive evaluation and commented: "The Gaming and Wagering Commission's probity approval has been granted subject to a number of conditions designed to ensure that the Commission has oversight and the capacity to monitor any change in licensee management or ownership".