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OceaniaVictoria's Gambling Commission Initiates Disciplinary Proceedings Against Crown Melbourne, Potential Fine of...

Victoria’s Gambling Commission Initiates Disciplinary Proceedings Against Crown Melbourne, Potential Fine of AUD 100 Million

The Victorian Gambling and Casino Control Commission (VGCCC) has taken further action against Crown Melbourne, initiating disciplinary proceedings that could result in a substantial fine of up to AUD 100 million. This latest development follows the state’s ongoing investigation into Crown’s suitability to hold a casino license, focusing on allegations of violations related to responsible gambling practices rather than money laundering or organized crime links. The VGCCC’s aim is to ensure Crown adheres to its obligations and safeguards vulnerable patrons.

Background:

The process began in February 2021 when an investigation was launched into Crown’s suitability to hold a casino license in Melbourne. This inquiry followed the Bergin Inquiry, which concluded that Crown was unsuitable to hold a license in New South Wales. In October 2021, Victoria’s Royal Commission further deemed Crown inadequate to maintain a license in the state.

Disciplinary Proceedings and Allegations:

The VGCCC has instituted additional disciplinary proceedings against Crown Melbourne, citing inadequate supervision and interaction with customers displaying signs of problem or risky gambling. It specifically focuses on Crown’s alleged violation of the Responsible Services of Gambling regulations. Crown has been asked to provide information regarding its Responsible Services of Gambling obligations, which will be assessed to determine appropriate disciplinary action.

Potential Consequences:

If it is determined that Crown has indeed violated its obligations, the company could face severe consequences. These may include a fine of up to AUD 100 million, variation of its casino license, or censure, accompanied by a rectification process. The VGCCC emphasizes that Crown’s responsible gambling obligations are crucial for protecting vulnerable patrons and preventing gambling-related harm to individuals, families, and the community.

Chair’s Statement:

Fran Thorn, Chair of the VGCCC, underscores the importance of Crown’s responsible gambling obligations and the Commission’s commitment to address the issues uncovered during the Royal Commission. The VGCCC aims to ensure Crown aligns with its legal obligations and meets the community’s expectations regarding responsible gambling practices. Thorn stresses that the Commission will remain steadfast in its resolve to protect vulnerable patrons and hold Crown accountable.

Investigation Into China UnionPay Process:

In April 2022, the VGCCC launched a separate investigation into Crown Melbourne following the discovery of a China UnionPay process devised by the operator, enabling circumvention of Chinese currency restrictions. While this particular investigation is distinct from the ongoing disciplinary proceedings, it highlights additional concerns surrounding Crown’s operations.

The VGCCC’s disciplinary proceedings against Crown Melbourne reflect the regulator’s commitment to upholding responsible gambling practices and safeguarding patrons. With potential consequences including a substantial fine, license variation, or censure, Crown faces significant scrutiny. The ongoing investigations and subsequent actions underscore the importance of adhering to legal obligations and meeting community expectations in the realm of gambling regulation. The VGCCC’s firm stance aims to ensure the well-being of vulnerable individuals and protect the broader community from the potential harms associated with gambling.

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