Crown Melbourne, a prominent casino operator in Victoria, Australia, has encountered another setback as it faces potential penalties of up to AUS$100m. The Victorian Gambling and Casino Control Commission (VGCCC) issued a notice to Crown, requiring it to provide information regarding breaches of the Casino Control Act that were uncovered during the 2021 Royal Commission investigation.
The VGCCC has the authority to impose fines and potentially vary Crown’s casino license. This development follows the casino’s recent AUS$80m fine related to illegal activities involving the “China Union Pay” process.
Breaches of Section 68 of the Casino Control Act:
Crown Melbourne was found to have violated Section 68 of the Casino Control Act, which prohibits extending credit to patrons in connection with gaming or betting. The casino engaged in practices that involved exchanging bank cheques made payable to patrons for gambling chips of equal value. Additionally, Crown allowed patrons to exchange blank cheques payable to the casino for chips used in gambling activities. These actions directly contravene the restrictions established by the Act, which aim to protect patrons from excessive gambling and safeguard the casino against criminal influence.
VGCCC’s Disciplinary Measures:
The VGCCC has the authority to impose penalties on Crown Melbourne based on the findings of the 2021 Royal Commission. In this case, the potential penalties for the casino could reach AUS$100m, and there is also the possibility of varying Crown’s casino license. The VGCCC emphasizes that adherence to financial restrictions is crucial to ensuring responsible gambling and preventing criminal exploitation.
Crown Melbourne’s Previous Disciplinary Proceedings:
This latest disciplinary process marks the third action taken against Crown Melbourne based on the Royal Commission’s findings. The Royal Commission concluded that Crown was “unsuitable” to hold the Melbourne Casino License and had failed to comply with various legislative obligations. As a result, the casino has been under the supervision of a state-appointed special manager. In May 2022, the VGCCC imposed an AUS$80m fine on Crown for its illegal “China Union Pay” process. Subsequently, in July 2022, the VGCCC initiated disciplinary proceedings against Crown regarding its approach to responsible gambling.
Relevance of the Bergin Report:
The investigation conducted by the VGCCC builds upon the findings of the Bergin report, which determined that Crown was unsuitable to operate a casino in New South Wales. The company was also deemed unfit to operate a casino in Sydney’s Barangaroo region. The scrutiny from multiple regulatory bodies underscores the need for stronger compliance measures within the Australian casino industry.
Crown Melbourne’s potential penalty of up to AUS$100m for breaches of the Casino Control Act is the latest blow to the casino’s reputation and operations. The VGCCC’s actions reflect the importance of upholding financial restrictions to protect patrons and maintain the integrity of the gambling environment.
As the regulatory investigations continue, Crown Melbourne must address the shortcomings highlighted by the Royal Commission and demonstrate a commitment to responsible gambling practices. The outcomes of these disciplinary proceedings will undoubtedly shape the future operations and compliance efforts of Crown Melbourne, and potentially influence broader regulatory reforms within the Australian casino industry.