Crown Resorts, Barangaroo, Sydney

New South Wales taxpayers may be liable for compensation payments in the event that the Independent Liquor and Gaming Authority orders Crown Resorts to implement tighter controls to keep criminals out of its forthcoming Crown Sydney facility, according to the Sydney Morning Herald.

This payment could be required due to the terms of the agreement that Crown signed with the NSW government in 2014 to build the complex.

The ongoing inquiry led by former NSW Supreme Court Judge Patricia Bergin is mandated to report back to the Independent Liquor and Gaming Authority on whether Crown is fit to hold its casino license for the Sydney facility. The commission might order Crown to make changes.

According to the new report, it could be NSW taxpayers themselves, and not Crown, that will be liable for whatever financial impact flows from such regulatory issues.

Critics argue that the terms of the 2014 agreement have undermined the position of the local government and its ability to serve the public interest.