Blackstone Group secures approvals for Crown Resorts acquisition

The Blackstone Group is closer to acquiring Crown Resorts Ltd. Two regulatory approvals were issued by the relevant authorities in Victoria and New South Wales. The Victoria Gambling and Casino Control Commission and New South Wales Independent Liquor and Gaming Authority have finalized their screening process and established that the companies may continue with the AU$8.9bn acquisition.

This is roughly $6.5bn. VGCCC has issued a caution to the buyer and said that in light of recent events, The Blackstone Group would need to make sure that Crown Resorts complies with all regulatory standards. Crown Melbourne, one of the properties owned by the company, is already under a special supervision regime that will continue for the next two years and come to an end only in 2024 and only if the property has proven that it does not need supervision.

VGCCC Chairperson Fran Thorn has welcomed The Blackstone Group and said that the company has proven its suitability to become a buyer of the embattled gaming and entertainment group. The company has been in hot water with authorities over questionable practices involving payments with UnionPay, a credit card system that prohibits gambling transactions.

Thorn reminded the company that the approval is still predicated on The Blackstone Group’s commitment to ensure that Crown Resorts continues to stick to regulatory conditions, which have changed to reflect a more stringent and less lenient approach to offending gambling companies in Australia.

The other regulator to give its nod to the deal is the New South Wales Independent Liquor and Gaming Authority. This comes in the context of many changes in the regulated gambling industry. Victoria allocated $40m to spend on supervision for the Crown Melbourne. Elsewhere, Crown Sydney announced that it’s beginning to look to hire staff for its casino floor. VGCCC also ordered Crown to pay a $57.4m financial penalty.

Crown Resorts is likely to face more regulatory action against it in light of past transgressions. None of this is catching The Blackstone Group by surprise it seems, as the group said previously that it had accounted for such developments and is still determined to proceed with the acquisition.

Before it does so, it would need the approval of the regulator in Western Australia. The company also needs the approval of the Federal Court of Australia. These are expected to be granted soon enough and The Blackstone Group does not expect anything to upset the deal. The latest round of regulatory approvals is indeed encouraging.

Image credit: Crown Resorts