“The company that committed these unacceptable, historic breaches is far removed from the company that exists today,” he says.

At the time of the Blackstone deal, insiders believed Crown shares were worth more than the $13.10 on offer from the US suitor. The assessment was based on Crown recovering from the regulatory issues, which have now been brought to a head, and tourism bouncing back from the COVID-19 pandemic.

However, the subsequent patchy recovery of the Chinese market – which underpinned the billions of dollars invested in Crown over the past decade – shows why the casino’s investors, including Packer, opted to cash in their chips.

It is now up to Blackstone to work out how to make a return on its investment, which is still firmly based on the gambling business as shown by the appointment of casino veterans such as Carruthers.

Another question looming is what does a fine of this magnitude mean for rival casino operator Star Entertainment, which is in an even more desperate state than Crown was – and without the prospect of a white-knight suitor to rescue investors.

Loading

AUSTRAC is hot on the heels of Star’s new board and management for similar breaches to Crown’s, but there is also the continuing uncertainty of other regulatory fines and the $120-million-a-year tax rise that could jeopardise the future of the Sydney operations, according to The Star.

Blackstone must be thinking they made the right bet with Crown.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.