he Victorian Gambling and Casino Control Commission (VGCCC) is conducting an investigation into undocumented practices at Crown Melbourne Casino. This comes after the Commission’s decision to impose a fine of $30 million on the operator over its bank check practice. The Royal Commission into the Casino Operator and License found that Crown allowed patrons to gamble with personal bank checks before they had cleared, violating the Casino Control Act.
VGCCC’s Decision to Impose Fine:
The VGCCC has taken disciplinary action against Crown Melbourne Casino, imposing a $30 million fine for its bank check practice. This practice involved allowing patrons to gamble using bank checks made out to themselves rather than Crown, circumventing the controls on check usage at the casino. The Commission considers this violation to be serious due to its long-running nature and the lack of documentation surrounding the practice.
Prohibition on Check Usage:
The Casino Control Act 1991 (Vic) prohibits the use of checks at the casino, except in specific circumstances. The intention behind this prohibition is to prevent the extension of credit to gamblers and to mitigate the risk of money laundering. Crown’s violation of this prohibition raises concerns about its adherence to responsible gambling practices and regulatory compliance.
Blank Check Controversy:
The VGCCC expressed concerns over allegations that Crown may have accepted blank checks in exchange for gambling chips. This practice would involve Crown filling in the amount owed by the patron after they finished gambling. While there is insufficient evidence to establish the occurrence of this practice, it would constitute a serious contravention of the Act. The VGCCC will issue directions to Crown to ban both the bank check and blank check practices, ensuring compliance with the regulations.
Commitment to Prevent Undocumented Practices:
Chairperson Fran Thorn emphasized the VGCCC’s commitment to investigating undocumented practices at the casino and preventing further occurrences. The Commission recognizes that such practices expose Crown to the risk of money laundering and compromise the safety and fairness of the casino. By taking disciplinary action and ensuring transparency, the VGCCC aims to maintain the integrity of the gambling industry and protect patrons from potential harm.
Previous Enforcement Actions Against Crown:
This is the third instance where the VGCCC has exercised its stronger enforcement powers against Crown for conduct revealed by the Royal Commission. In May 2022, the Commission fined Crown $80 million for its China Union Pay process, and in November 2022, it issued a record fine totaling $120 million for breaches of responsible service of gambling obligations. These actions demonstrate the VGCCC’s commitment to holding operators accountable and maintaining regulatory standards.
The VGCCC’s investigation into undocumented practices at Crown Melbourne Casino highlights the importance of adherence to gambling regulations and responsible gambling practices. Crown’s violation of the Casino Control Act regarding the bank check practice has resulted in a substantial fine. The VGCCC’s commitment to transparency, integrity, and the prevention of undocumented practices reaffirms its role in ensuring the safety and fairness of the gambling industry. It remains essential for operators to comply with regulations to protect both patrons and the industry’s reputation.