Gaming Control Board backs approval of Cannery sale

The Nevada Gaming Control Board on Wednesday recommended approving Melbourne, Australia-based Crown Ltd.’s bid to buy Cannery Casino Resorts for $1.8 billion in an all-cash transaction.

“We look forward to the opportunity to be part of the casino industry in Las Vegas and Nevada,” James Packer, Crown’s chairman and majority shareholder, told regulators during a brief opening statement.

Crown Chief Executive Officer Rowen Craigie, who gave the majority of the presentation to regulators, said the company pursued the purchase because it sees long-term growth prospects in the locals market.

The company will focus on improving the performance of Cannery through Crown’s experience with customer loyalty programs, customer service initiatives, innovative slot and poker products, and employee training and development programs, Craigie said.

Crown owns and operates properties in Melbourne and Perth, Australia, the United Kingdom, British Columbia and Alberta as well as in Macau.

Cannery Casino Resorts will be held as a subsidiary of Crown Ltd., which is publicly traded on the Australian Securities Exchange.

Craigie said a new Las Vegas-based senior management team and board will be formed to oversee the Cannery’s operations.

The board will report directly to Craigie, who will probably have a board seat, he told regulators.

Crown is currently in the process of interviewing CEO candidates for the subsidiary.

William Wortman and Bill Paulos, the two industry veterans who formed Cannery Casino Resorts in 1996, will remain as advisers for six months after the opening of the Pennsylvania racino, which is scheduled to be completed in April.

Both men will also remain as directors of the company.

Many of the properties’ managers and employees will remain with the company after the transaction, Craigie said.

The Cannery Casino Resorts owns the Cannery in North Las Vegas, the Eastside Cannery, which opened in late August, and operates the Rampart Casino at the JW Marriott at Summerlin.

Crown entered into an agreement to purchase the locals gaming company in December 2007.

The company is scheduled to appear before the state Gaming Commission on Jan. 22 for final approval.

The deal, however, will not close until gaming regulators in Pennsylvania finish their investigation, which Craigie said should be in the next few months.