In Australia and the Consolidated Press Holdings Proprietary Limited (CPHPL) vehicle of billionaire businessman James Packer has reportedly severed its boardroom ties with prominent casino operator Crown Resorts Limited.
According to a Tuesday report from the Australian Broadcasting Corporation, the investments enterprise holds a preeminent 36% stake in the casino firm although it has now nevertheless terminated the consultancy contract it held with Crown Resorts Limited non-executive director John Poynton.
Voluminous vacuum:
The broadcaster reported that Poynton was the last remaining CPHPL appointee left on the board of Crown Resorts Limited following the Tuesday resignations of fellow non-executive directors Guy Jalland and Michael Johnston. Although the experienced businessman is to remain on the Sydney-listed casino firm’s board, the move purportedly means that its largest shareholder now effectively has no direct representation.
Rapid response:
The Australian Broadcasting Corporation reported that CPHPL’s blow came only hours after a special inquiry being conducted by former New South Wales Supreme Court Judge Patricia Bergin had determined that the Melbourne-headquartered casino firm was currently unfit to hold a gambling license for its Crown Sydney development. This decision is purportedly now headed to the New South Wales Independent Liquor and Gaming Authority with its release having immediately sent the value of individual shares in Crown Resorts Limited down by some 9%.
Suitable step:
Philip Crawford (pictured) leads the New South Wales Independent Liquor and Gaming Authority and he reportedly told the broadcaster in advance of yesterday’s Johnston and Jalland resignations that Crown Resorts Limited would have to ‘blow itself up to save itself.’ When subsequently informed about the departures, he purportedly proclaimed that ‘somebody is listening to us and that’s really positive’ as the moves are destined to send ‘a big message to me and the media.’
Pertinent patience:
The Premier of New South Wales, Gladys Berejiklian, reportedly pronounced that the findings of the Bergin inquiry had been direct, thorough and clear and that she was now prepared to wait for specific recommendations and advice from the New South Wales Independent Liquor and Gaming Authority before proceeding further.
Berejiklian reportedly told the broadcaster…
“It’s all there in black and white and I’m sure both Crown Resorts Limited and any other organization will read that report carefully and accept what action has to occur before anybody is able to have a licence in New South Wales. Anybody who wants to operate a casino in New South Wales has to stick to the rules, has to stick to the law. The government doesn’t apologize for upholding those high standards.”
By now, no one can be surprised to learn that any company attached to the gaming industry suffered losses last year because of COVID-19. The global pandemic sent revenue into the gutter for a strong majority of the operators in the ecosystem, with only the hope that things would turn around quickly keeping some of them alive. Ainsworth Game Technology, the Australian games developer, wasn’t the exception, according to its latest financial update. It took a massive hit in the second half of the year, but has begun to see a turnaround it hopes will remain intact.Ainsworth reported today its preliminary results for the last half of 2020, indicating that it will more than likely report losses of around $10.8 million for the period. The final numbers will be available around February 25 following an audit, but the company expects to find that its legs were kicked out from under it by the coronavirus. However, despite taking a beating, the company forecasts positive EBITDA (earnings before interest, taxes, depreciation and amortization) of $4.6 million. This comes thanks to an increase of 71% in revenue across the half compared to the first six months of the year. Overall, the performance is 33% lower than it had been a year earlier. Even though the large U.S. gaming market shut down for a few months last year, Ainsworth was able to take advantage of reopenings seen in the second half to buoy its numbers. The company points out that the North American market gave it the most support, as revenue increased from $16.3 million in the first half of the year to $31.7 million in the second. It added, “Improved participation and lease revenue contributed 40% of the current period’s revenue, an increase of 10% on the [2019 period]. AGT’s Historical Horse Racing products continue to positively contribute to revenues within this segment.”In its domestic backyard, Ainsworth also saw improvement. Its Australian operations shot up 118% from the first to the second half, with the last six months of 2020 contributing $14.7 million. Another of its areas didn’t perform as well, though, with Latin American operations stumbling. Ainsworth explained, “Given the uncertainties and deferrals of purchasing decisions caused by the pandemic within this region, further reductions in revenues are expected in the short term before a return to pre-pandemic activity levels, impacting [the] timing of expected cash flows. Based on this, the Group is reviewing the recoverable amount of the Latin American Cash Generating Unit (CGU). This review is ongoing to determine the financial impact and a material non-cash impairment charge is anticipated for the Latin American CGU.”
The light shining on Crown Resorts just dimmed a little more. The results of the Bergin inquiry, launched to determine whether the casino operator is worthy of a license in New South Wales (NSW), are in and the verdict is official. Crown doesn’t deserve to run a casino at its new resort in Sydney, putting in jeopardy the future of the $1.7-billion property, as well as the company. The ruling wasn’t a surprise to anyone, as even last November there were already indications that Crown might be determined unfit to hold a casino license. Crown has been the subject of regulatory scrutiny that has increased over the past couple of years, but which spans many more. It has been involved in money-laundering activity (either as a willing or an incompetent participant, depending on who you ask), has welcomed warlords into its casinos, has rigged gaming machines and much more. After executives admitted during the Bergin inquiry that Crown had been complacent in providing anti-money-laundering protection, the company’s fate was all but sealed. Crown is not a “suitable person” to be tied to gaming licenses and the subsidiary in charge of the Sydney resort, Crown Sydney Gaming, is not a “suitable person” to hold a license.The findings were revealed in an extensive report yesterday; however, there is still a chance Crown might be able to redeem itself. The Bergin inquiry is named for Commissioner Patricia Bergin, who previously served as a judge on NSW’s Supreme Court and who led the inquiry. She said in her response, “If Crown is to survive this turmoil and convert itself into a company that can be regarded as a suitable person … there is little doubt that it could achieve a fresh start and emerge a very much stronger and better organization.”In order to turn things around, Crown will need to clamp down on its internal operations and keep its nose clean, without a single breach or questionable blip on the regulatory radar. In addition, Bergin wants to rewrite the casino laws in NSW to include language that no single shareholder can attain, hold or transfer more than 10% of a casino licensee without prior approval. She wants to create an independent casino regulator and prevent casino operators in NSW from dealing with all junket operators.The outcome of the Bergin inquiry could impact Crown elsewhere in Australia, as well. The results could influence Victoria, which is also investigating the company, and cause problems with its Melbourne operations. In light of the findings so far, Crown has already halted trading of its stock, which will only further jeopardize its future.
Chung Chak “John” Lee laundered millions of dollars through Crown Resorts casinos in Australia. That’s the allegation against him as Australian authorities try to get him extradited from Thailand. Apparently, as has already been demonstrated on several occasions, Crown Resorts made it easy for individuals to pass huge bags of money through its operations without many questions asked, and Lee may have been one of those who took advantage of the casino operator’s lax policies.Lee was arrested in Thailand this past December, accused of being an international drug lord and a part of The Company, an international crime syndicate. The organization has been on the radar by law enforcement around the world, as well as the United Nations, for managing around 70% of the methamphetamines that entered Australia. However, Lee wasn’t just into drugs and led activity in both Hong Kong and Bangkok that catered to high-rolling gamblers. He didn’t just offer them a connection to the tables, though. He reportedly had joined forces with Crown to drive business and, according to investigators, laundered millions of dollars through Crown’s casino in Melbourne in 2012.This isn’t the first time that Lee’s name has been linked to Crown. The Company was featured in news pieces on several occasions last year and the year before, all showing how easy it was to use Crown’s operations to launder funds. Those reports, and Lee’s illicit activity, are what led to the investigation into Crown’s history and New South Wales’ Bergin inquiry into the company’s ability to hold a gambling license. That inquiry is expected to wrap up at any time, and Crown is facing the possibility of losing its license and/or being forced to completely revamp its executive ranks to appease regulators.The 65-year-old Lee is reportedly a high-ranking boss in the 14 K Triad and is said to have spent the past 30-plus years running illegal drug operations across the globe. He is also said to have connections with Broken Tooth, another notorious triad boss reportedly on the run somewhere in Malaysia. Lee apparently has well-placed connections, including in some high-ranking offices in both Taiwan and Thailand. That might create some delays in his extradition to Australia, but it’s not likely to prevent it, unless he figures out a way to conveniently escape before the extradition order can be approved.
He’s had one of the more impressive runs in the world of poker. He’s also been able to make an impact on the international politics stage. But, after several years away from the game, is Antanas ‘Tony G’ Guoga looking to return to the poker world on a full-time basis?
End of His Political Career Could Signal Change
According to casino journalist Rose Varrelli in Australia, the end of Guoga’s time in the European Parliament might be signaling a change in course for the poker provocateur. In 2016, Guoga ran for and was elected to a seat in the European Parliament, the legislative body for the European Union. After three years on that esteemed board, Guoga lost in a reelection bid but was able to run for and win a seat in the Lithuanian Parliament (Guoga has dual Lithuanian/Australian citizenship as he was born in Lithuania and moved at the age of 11 to Australia). The poker professional has been apparently thinking of his place in both politics and poker since taking the Lithuanian Parliament seat.
In mid-January Guoga, allegedly citing his lack of influence on politics in the body, resigned his Parliament seat. Other information coming out, however, indicated he was not pleased with the direction of the Labor Party leadership in the Lithuanian Parliament. This dissatisfaction came out after several comments from the party’s chairman, Viktor Uspaskich, on several hot button issues.
Guoga made it official in a Tweet to his followers:
Yesterday, I decided to resign from the Lithuanian Parliament for a number of important reasons – I don’t think I can exact the change desperately needed in national politics. I now focus on business – maybe I may have some more time to play some poker! 🚴 https://t.co/QhrEJ8rtWL— Antanas Guoga (@TonyGuoga) January 13, 2021
Could Guoga Adapt to Today’s Game?
There are some in the poker world that would say that the game has changed since Guoga once was a part of it. Even though he has been a part of the political spectrum for several years, Guoga hasn’t completely dropped playing the game. In fact, some of his biggest on the felt success has come over the last few years.
2019 was the biggest earnings year of his career, taking down more than $1.1 million in earnings from tournaments primarily in Europe. Guoga won the partypoker MILLIONS Short Deck High Roller tournament in August 2019, earning him $265,859 for his efforts, but that was just a warmup. In Rozvadov at the Super High Roller event (€250,000) for the World Series of Poker Europe, Guoga took down fourth place for the biggest payday of his career, more than $880,000 (U. S.).
The fingerprints of Guoga on the world of poker are all over the place. He was the founder of PokerNews back in the early Aughts (before selling the operation to The Stars Group in the late 2010s), which arguably ushered in the age of online poker news operations. But it was his play on the tables – and his aggressive, combative nature – that drew people to the character ‘Tony G.’
He would be a part of several verbal sparring matches when he was at his peak on the tables. One in particular was a particularly tense verbal barrage with Russia’s Ralph Perry during the International Poker Championships. It was this battle where Guoga’s catchphrase “On yer bike!” (used to summarily dismiss Perry from the table) came into the lexicon.
The question would be is whether the game has passed Guoga by or not. Although his success in 2019 was the best of his career, it was in “high roller” tournaments, not in normal Main Event battles with larger fields. There’s also the factor that Guoga, much like many other poker players, has basically had to sit on the sidelines in 2020 due to the COVID pandemic. How much ‘Tony G’ might be able to add to his $7 million-plus career earnings in a “new age” of poker play is unknown, but his personality would be a change in the current state of the game.
