The New South Wales Independent Liquor and Gaming Authority (ILGA) has officially told the Crown Resorts that it is no longer suitable to hold the license for its new Sydney casino.

The operator has been under the scanner for allegations of money-laundering and other crime-related activities at its casinos. The allegations were followed by a lengthy inquiry headed by a retired Supreme Court Judge Patricia Bergin.

Judge Bergin had found the operator unfit to hold an operational license and had also recommended several replacements to the Crown board.

As a consequence of the finding, the Crown has lost the casino license and it would not be able to operate its new AU$2.2bn (US$1.7bn) Barangaroo casino in Sydney.

The operator would address the breach in consultation with the ILGA.

As per reports by Gambling Insider, Crown CEO and managing director Ken Barton announced his resignation earlier this week, following the departures of directors Guy Jalland, Michael Johnston, and Andrew Demetriou. Helen Coonan will become a temporary executive chairman while the board searches for a replacement for Barton.