Former Crown Chief Criticizes Uneven Gambling Regulations in Australia
Uneven Regulation Impacting Casinos and Smaller Venues
James Packer, the former head of Crown Resorts, recently voiced strong opinions on the current state of gambling regulations in Australia. In an interview while aboard his yacht near Fiji, Packer criticized the regulatory bodies and political authorities for inconsistent enforcement and changes that have disrupted the casino industry, benefiting smaller local pubs and clubs instead.
He highlighted how state regulators have applied different standards to the two largest casino operators, claiming Crown Resorts has endured more intense scrutiny compared to its rival, Star Entertainment. Packer referenced investigations beginning in 2019 which led to leadership changes among regulators in Victoria and Western Australia, while officials in New South Wales retained their positions. He expressed bewilderment over Philip Crawford, head of the New South Wales Independent Casino Commission, maintaining his role despite issues facing Star. Although Packer acknowledged Crown’s mistakes, he argued that the regulatory responses were harsher on Crown than on Star.
Tax Reforms and Political Interference
Packer directed significant criticism at former Victorian Premier Daniel Andrews, accusing his government of reversing a 2015 tax agreement. This reversal reportedly cost Crown Melbourne tens of millions in earnings shortly before Packer finalized the AUD 8.9 billion acquisition of Crown by Blackstone in 2022. He asserted that these sudden regulatory changes threatened the sale and left him feeling targeted. Years of regulatory probes, according to Packer, compelled him to relinquish his stake to meet regulatory fitness criteria.
Regulatory Burden and Personal Reflections
Further reflecting on the consequences of stricter rules introduced after various investigations, Packer noted that measures such as mandatory ID checks, strict time restrictions, and prohibitions on cash transactions have placed casinos at a disadvantage. Unlike bars and clubs, which continue to accept cash, casinos face operational hurdles that make it difficult for large resorts to compete with smaller local venues.
Despite his criticisms, Packer acknowledged that the Blackstone deal was a beneficial decision, considering it one of his wiser business moves. He described himself now as a typical businessman who has occasionally exited ventures at opportune times, citing previous successful sales in media and gaming partnerships in Macau. He also shared candidly about his struggles with mental health, exacerbated by Crown’s legal challenges, but noted improvement through ongoing treatment and a commitment to sobriety over the past two years.
Since stepping away from the gambling industry in 2022, Packer’s commentary has reignited debate about the evolution of Australia’s gambling landscape and the varied impacts of regulatory changes on different stakeholders.
