For all the heartache that casino giant Crown Resorts has caused James Packer in the past few years, it was pride that dominated the billionaire’s emotions as“There have been ups and downs and challenges, but today’s final sale to Blackstone is confirmation that we have built one of the country’s best tourism, entertainment and leisure companies, and I am extremely proud of that,” Packer said on Friday.
Yes, McCann was handsomely rewarded with a sign-on options package that is worth $5.2 million at Blackstone’s $13.10-a-share bid price. But taking on a company where the entire board and management team had been turned over was a huge reputational gamble – neatly highlighted by the fact one of hisMcCann, who is yet to reveal what his future involves beyond a desire to “sit on a beach for a couple of weeks”, concedes it has been a relentless 12 months.
Blackstone finds itself in a fascinating position. After two years on the outside looking in, it clearly has big plans for Crown, with Tynan flagging investment in Crown Perth, new developments at Crown Melbourne, and the addition of talent and expertise from across Blackstone’s network, starting with new chairman Bill McBeath, who previously ran a Las Vegas casino called The Cosmopolitan, which Blackstone turned around and sold.
He points to Crown’s new system for onboarding customers at its yet-to-open Sydney casino as an example of where the group’s risk management and compliance systems are now world-class, and says that is the sort of bar Blackstone wants to keep setting for the industry., an idea quickly adopted by NSW casino regulator Philip Crawford.
“Yes, we have a business to run, but we only want the right customers, and we want to remain a responsible gaming environment.”The next two years will not be easy for Blackstone as the next wave of reform is completed. After what’s been revealed in the past two years, the scrutiny on this business must never be allowed to drop again.