Crown Sydney, which is owned by Crown Resorts, has shut down one of its two gaming spaces and cut 95 jobs only a year following its opening.
The only VIP casino for global gambling high-rollers:
The casino, the “brain-child” of previous president and principal shareholder James Packer, was constructed with the intention of being a VIP-only establishment to be convenient for global gamblers who are used to spending large amounts of money while gambling. It also had no machines for poker and players had to deposit at least $20 wager to gamble.
Moreover, in order for clients to get access to the casino’s “exclusive mahogany gaming floor,” which includes 30 private lounges, its members must spend at least $45.000 across the facility’s restaurants, hotels and bars. However, although everything seemed to be in order, the news of the closure came quite suddenly.
Mahogany gaming floor closing:
Yesterday the owner did indeed verified that “mahogany floor will be closed until business levels stabilize.” As for its clients, they will from now only have access to the 66 electronic tables and 160 tables in the “crystal“ gaming space. Speaking on the matter, a spokesperson told Nine newspapers: “Crown has made a decision to consolidate its two VIP casino floors in Sydney in response to the current macroeconomic challenges facing our industry alongside other Australian businesses. Unfortunately, this decision will impact some of our team members, and we are working with them and their union to consult on their options in the hopes of placing as many people as possible in other roles. Our priority is to support our people through this process, and manage these changes with care and respect.”
As for the employees of that floor, they have been informed of a “voluntary redundancy program“ that will take place just for them, and some of them will be presented with an offer to transfer to work at other Crown casinos such as the one in Perth or Melbourne, as well as the choice to stay here, but to work in different positions.
Controversy even before the official opening:
Prior to its opening, the said casino was included in “controversy,” following an investigation that discovered it was a front for money laundering and global criminal syndicates. Following that situation, government investigations in 3 states where Crown Resorts has casinos, discovered that the company did not meet the requirements to hold a casino license. Therefore, the mentioned firm was obliged to overthrow its management, board of directors and established procedures, which it did and received a conditional license that lasts till December 31.
What’s more, Crown Resorts is currently liable to pay a $450 million fine, one of the largest fines in Australian corporate history, imposed by the Federal Court following historic violations of Australian anti-money laundering laws at its Melbourne and Perth casinos.