Crown terminates contracts with Packer’s firm

Crown terminates contracts with Packer’s firm

The operator has cancelled contracts with Consolidated Press Holdings (CPH).

Australia.- Crown Resorts has announced it has terminated two contracts with a firm owned by its former director and current main shareholder, James Packer.  

The contracts were between the casino operator and Consolidated Press Holdings (CPH). 

One contract was a services agreement dated July 2016 that enabled Crown to request the provision of services by key CPH executives at pre-agreed hourly rates.  

The other was a Controlling Shareholder Protocol dated October 31, 2018. This agreement allowed Crown to share confidential information with CPH executives and with James Packer. 

Packer was recently grilled at the ongoing hearing conducted by New South Wales Independent Liquor and Gaming Authority (ILGA) into Crown’s operations in China and potential facilitation of money laundering.  

The termination of the contracts came a day after the Australian financial regulator, AUSTRAC, confirmed a formal investigation had been initiated into Crown’s casino in Melbourne.  

The operator released a statement on Wednesday saying: “Crown Melbourne will respond to all information requests in support of the investigation and fully co-operate with AUSTRAC in relation to this process.” 

Packer admitted at the ILGA hearing that the board at Crown needed to be more independent. He said he would agree to sell part of his shares as long as the firm was able to keep the casino licence for the property it plans to inaugurate in Sydney in December.  

This week Crown Resorts will hold its general meeting and some analysts expect shareholders may demand resignations.  

In this article:
Crown Resorts ILGA James Packer