Debabrata DasShares of Crown Resorts fell 1.2% on the ASX a day after the Victoria government expanded its investigation into the company to include issues such as it potentially underpaying AU$200m (US$155m) in tax on its gaming machines.
Originally slated to last just 10 weeks, the investigation will now extend to 15 October following a number of revelations such as a lax attitude to gambling addiction and misclassifying marketing costs as winnings on its tax returns.
Evidence was given to the commission that the gaming group had described freebies, such as free accommodation, as winnings from its gaming machines – known locally as “pokies” – on its tax filings.
Additional time
On 10 June, the Victorian government granted a request from the Royal Commission into the Casino Operator and License for additional time and funding.
The Commission will now have until 15 October 2021 and a further AU$19.75m to complete its work.
The Commission was set up in February 2021 to ascertain if Crown was fit to hold a gaming licence in Victoria. Its original timeframe to complete the work was 1 August 2021 and it had a budget of AU$10m.
Royal Commission
“Any shortcomings identified by the Royal Commission will be addressed. The board and I are committed to making Crown a stronger, more transparent and respected company,” said Helen Coonan, executive chair of Crown, in a statement to the stock exchanges.
Last week, the Australian Transaction Reports and Analysis Centre (AUSTRAC) had also widened a previously announced investigation into SkyCity’s takeover bid for Crown Resorts.
