Crown's chair and Melbourne CEO step down, another company could take over the casino

As a result of evidence of money laundering coming forward, Crown Melbourne’s chief executive, Xavier Walsh, decided to step down on August 20, though he will "remain available to assist the company" until his employment officially ends on December 9.

The announcement came as the company gave closing submissions to the Victorian royal commission on Tuesday, revealing a replacement for interim executive chair Helen Coonan would be announced shortly, allowing her to step down from the role she took on in February by the end of this month.

This follows the decision of several board members to leave Crown Resorts this year. Walsh was appointed boss of the casino in December and has held roles within the company since 2008. 

Counsel assisting the commission, Adrian Finanzio, last month told the inquiry that Walsh and Coonan were not suitable to lead reform of the company, and that Crown was not suitable to hold a licence in Victoria, reports Perth Now.

“This is not a case of isolated or trifling indiscretions or breaches, capable of easy and quick rectification. No amount of restructuring can restore confidence in it as a fit and proper person to hold a license,” Mr Finanzio said.

“The evidence reveals serious misconduct, illegal conduct and highly inappropriate conduct, which has been encouraged or facilitated by a culture which has consistently put profit before all other considerations.”

On Tuesday, Commissioner Ray Finkelstein began the final hearings of the months-long probe that has uncovered illegal behaviour. Crown’s lawyer said it accepts the findings and apologises for them, as reported by Brisbane Times.  He also referenced the possibility of another company taking over the casino, and questioned submissions made by Crown’s lawyers urging him to allow the casino to continue with an independent monitor to oversee governance reforms and help the company return to being an acceptable operator. Crown said it would be open to the commissioner to find the company suitable to hold a licence.

As Government-appointed lawyers argue Crown should be de-licenced, the company warned on Tuesday its staff and shareholders would suffer if its main operating licence is cancelled.

"There would, on any view, be enormous disruption and possible financial hardship for so many, when so many are already living under great uncertainty and hardship as a result of the pandemic," said Michael Borsky, the company’s lawyer. Crown employs more than 10,000 people at its Melbourne complex, but the cancellation of the licence would be particularly damaging for the tourism industry and Crown’s “mum and dad” shareholders, remarked Borsky.

Also on Tuesday, the Victorian government announced it would split up the Victorian Commission for Gambling and Liquor Regulation (VCGLR), with the state’s Gaming Minister Melissa Horne saying a new dedicated casino regulation division would focus solely on holding the Melbourne operator to account.

An August 1 deadline for the commission to deliver its findings was pushed back to October 15 at the request of Commissioner Finkelstein after serious evidence emerged during the first weeks of public hearings.

Crown has faced legal battles and allegations of money laundering at its Melbourne casino since 2019, the one that brings in three quarters of its profit.