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Crown Resorts has been deemed unsuitable to operate a new Sydney casino at Barangaroo after a months-long public inquiry which exposed allegations of money laundering.
A final report from the Crown probe, commissioned by NSW's Independent Liquor and Gaming Authority (ILGA), was tabled in State Parliament this afternoon.
In it, Commissioner Patricia Bergin — a former chief judge in the NSW Supreme Court — said the company needed to make sweeping cultural changes if it wanted to be considered a suitable operator in the future.
It effectively means the casino component of Crown's new $2.2 billion skyscraper on Sydney Harbour will almost certainly be blocked from opening without changes by Crown, however, Commissioner Bergin's recommendations must still be officially adopted by the ILGA.
A hotel, and several restaurants in the tower have already opened.
The report comes after a year-long inquiry ordered by the gaming regulator into systemic issues at Crown's existing casinos in Melbourne and Perth, to examine whether the company was fit to hold the gambling licence for the new facility.
The hearings were told about incidents of money laundering and links to international criminal syndicates through Crown's relationship with private junket operators who sourced the company's VIP clients from overseas.
The inquiry also investigated whether Crown broke any of its regulatory arrangements when former executive chairman James Packer sold a portion of his shares to Hong Kong based gaming giant Melco Resorts.
It also probed Mr Packer's involvement in the company after stepping down from the top job.
It was told his company Consolidated Press Holdings was given regular business updates about Crown's affairs and that Mr Packer acted as a "de facto director" even after leaving company.
Allegations of criminality within the casino's operations were first raised publicly by an ABC Four Corners investigation in 2014 and again by Fairfax investigations five years later.
The report decried the Crown's "corporate arrogance".
"One of the difficulties for Crown was its unjustified belief in itself and its unwillingness to entertain the prospect that there was any force in any of the Media Allegations," the report read.
The "core problems" which made Crown unsuitable, the report said, were the operator's "poor corporate governance" and "deficient risk-management structures".
The Commissioner noted the operator recognised a need for cultural change and that it has identified matters requiring "urgent attention and rectification".
The report made 19 recommendations, including several changes to the Casino Control Act aimed specifically at addressing money laundering activities which were uncovered during the inquiry.
One of the key recommendations was the establishment of the Independent Casino Commission (ICC) to operate as an independent oversight body, with powers of a standing Royal Commission, to regulate the gaming sector.
The ICC would ultimately be responsible for licensing decisions and disciplinary actions taken against licensees.
Other key suggestions to put forward in the report included forbidding NSW casino operators from dealing with junket operators, persons who bring high-rollers or VIPs from abroad.