VGCCC Slaps Crown Resorts with AU$2M Fine

The Victoria Gambling and Casino Control Commission has issued a stern reprimand and a financial penalty to Crown Resorts, a prominent local operator, which has been found in breach of the state’s gambling regulation.

The offenses pertain to the cases of 242 self-excluded gamblers who were allowed to bet at the brand’s Melbourne property. Because of this, Crown Resorts will have to pay a penalty of AU$2m to cover the breaches under the Casino Control Act.

Self-excluded gamblers accessed Crown Resorts’ gaming floor

By definition, excluded patrons are not allowed to access – nor be granted entry – to gambling premises of any type. The onus is on gambling operators to ensure that this is indeed the case. According to the regulator, Crown Resorts has shown deficiencies in addressing this rule, but not necessarily out of malicious intent.

"Those who self-exclude must be able to trust that gambling providers will take all reasonable steps to enforce their decision to avail themselves of this harm prevention initiative," said Fran Thorn, VGCCC’s Commission Chair, in lambasting the company publicly.

Thorn doubled down and added that the casino had put people at risk in the way of harm and said that the breaches were caused by system failures rather than a "deliberate disregard."

Apart from addressing the financial penalty, Crown Resorts, owned by Blackstone Group which bought the casino operator amid a high-profile scandal involving money laundering, and that led to profound changes in gambling law in Victoria and elsewhere in the country, the company will similarly have to hire independent experts and implement their recommendations in ensuring that self-excluded gamblers are not granted entry into its properties.

All told, however, the VGCCC said that it supports Crown Resorts in its reform efforts in the wake of the Finkelstein Royal Commission and wants to see the company operate at full capacity and while doing everything mandated by law to protect vulnerable and at-risk groups.

VGCCC supportive of Crown Resorts’ reform efforts

Crown Resorts is going through a choppy spell. Blackstone Group, which is the world’s biggest investment fund, has been adamant about supporting its newly-acquired assets and believing in its long-term success, and recently disbursed more cash to this end. The Australian Financial Review reported this week that Blackstone had injected AU$500m into the operator.

However, the company saw its boss, Ciarán Carruthers, depart following the acquisition and prior to that, the company confirmed that it was laying off 1,000 people citing both regulatory pressure but also weaker tourism as the reason why.

Overall, the VGCCC has acknowledged Crown Resorts’ commitment to improving any deficiency across areas such as technology, staff training, monitoring and physical securities, but reiterated that it will keep a close eye on the company.

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