Nine director assures no one lobbied for Crown Resorts

James Packer, the former CEO of Crown Resorts, has accused Nine For Brands, Australia’s largest locally owned media company, employees of lobbying on behalf of the casino resort in the past. His accusations have been leveled at Nine Managing Director of Publishing James Chessell, and more specifically Peter Costello, a current Independent Non-Executive Chairman at the company.

This originally happened in June and July with Packer sending emails to The Australian. His accusations have finally elicited a response from the people he targeted in his emails. Chessell sent a rebuttal in an email to staff in which he informed that he had never spoken with Costello before, during, or after the reports entitled "Crown Unmasked."

Nine, which owns The Sydney MorningHerald and The Age, ran a series of media materials that unearthed questionable practices at the company. The publications resulted in an independent inquiry led by former judge Ray Finkelstein who found the company’s Melbourne property unsuitable to hold a license.

Crown Melbourne was placed under a special monitoring regime which is still ongoing and is subject to assessment which will determine whether Crown Resorts can take over once again and be entrusted with a license in 2024. The final recommendations of judge Finkelstein added that no individual shareholder should own more than a 5% stake in the company without a regulatory review and approval.

This impacted Packer himself who agreed to step down as the company’s boss along with other C-level executives to protect its name and seek a positive outcome for Crown Resorts and the Melbourne property. The company faced investigations in other states as well, including in New South Wales, Victoria, and Western Australia.

The report into Crown Resorts was spearheaded by investigative journalist Nick McKenzie, whom Packer offered praise, but said McKenzie knew more than the man himself did about the company’s inner workings. Packer specifically alleged that Costello acted as a "secret lobbyist" for him. Costello had been paid $300,000 to help Packer establish a better rapport with the then Victorian Gaming Minister Michael O’Brien, The Guardian reported.

Nine confirmed that Costello had indeed worked as a consultant for Packer’s Consolidated Press Holdings in 2011, but the company assured that since joining as director, Costello has not done any lobbying on behalf of Packer.

Chessell added that when Crown Unmasked had been first published, he had tried to address Packer’s concerns shared with him via email, but that didn’t work - after which Chessell began ignoring the "blizzard of correspondence."

"I hope he genuinely does make peace with Crown Unmasked and I wish him all the best," Chessell said in the letter to staff. Crown Resorts has since been purchased by the Blackstone Group.