Crown Resorts, the Australian casino operator, has been hit with two unprecedented fines totaling AU$120m by the Victorian Gambling and Casino Control Commission (VGCCC). The fines come as a result of Crown’s failure to fulfill its responsible service of gambling obligations, allowing customers to gamble excessively without breaks and engaging in illegal activities at its Crown Melbourne casino.
Fines and Violations:
The VGCCC has issued two separate fines to Crown Resorts. The first fine of $100m is in response to the operator’s consistent failure to intervene and prevent gambling harm at its Crown Melbourne casino. Crown allowed customers to gamble for prolonged periods, sometimes exceeding 24 hours, without taking appropriate measures to mitigate harm.
The second fine of $20m is related to Crown’s breach of laws in Victoria regarding the use of plastic picks and other devices to simulate “automatic play” on electronic gaming machines, commonly known as “pokies.” Crown failed to comply with a regulatory directive to prevent patrons from engaging in this illegal activity.
Crown’s Response and Disciplinary Action:
Crown Resorts has accepted the need for disciplinary action and acknowledged the necessity of implementing reforms to address responsible service of gambling obligations. The company recognizes the importance of fulfilling legal requirements and its social responsibility as a licensed operator.
Royal Commission and Regulatory Scrutiny:
The fines imposed on Crown follow a royal commission initiated in February of the previous year. The commission, led by Ray Finkelstein KC, was established to investigate misconduct at the Crown Melbourne casino. The findings of the commission revealed extensive, sustained, and systemic failures by Crown over a period of approximately 12 years.
In addition to the fines, the VGCCC is considering further disciplinary proceedings against Crown related to other findings from the royal commission. Crown Resorts also faces inquiries in New South Wales and Western Australia, amplifying the regulatory scrutiny faced by the company.
Implications and Industry Warning:
The $120m fines serve as a strong message from the VGCCC to Crown Resorts, demonstrating the commission’s commitment to combatting misconduct that exposes the community to increased gambling-related harm. These penalties reflect the commission’s intention to regulate for harm minimization and establish a safer gambling environment.
The disciplinary action against Crown sets a precedent for all gambling license holders in Victoria. The VGCCC emphasizes the expectation for operators to take significant measures in minimizing the detrimental impacts of gambling. It warns the entire Victorian gambling industry to prioritize responsible service and heed the commission’s actions as a guide.
Crown Resorts’ record fines of $120m by the Victorian Gambling and Casino Control Commission underscore the company’s failure to fulfill responsible service of gambling obligations. Crown’s shortcomings in preventing gambling harm, including allowing customers to gamble excessively and engaging in illegal activities, have led to significant regulatory consequences. As Crown faces disciplinary action, inquiries in other states, and increased scrutiny, it must address the systemic failures and prioritize responsible gambling practices to regain trust and ensure a safer gambling environment.