Published today (26 October), the report by the Royal Commission into Crown’s Casino Operator Licence in Victoria concludes that the operator is unsuitable to hold such a permit due to numerous failings. The Commission found that Crown engaged in illegal, dishonest, unethical, and exploitative conduct on a widespread and egregious scale. Similar failings were identified in the Bergin Report in New South Wales, leading to Crown being deemed unsuitable to operate a casino in Sydney’s Barangaroo region.
In the Victoria Royal Commission, additional failures were identified across governance, risk management, and responsible service of gaming. Grave, ongoing legal breaches and misconduct that contravened Australian laws and laws of other countries were discovered, often with the knowledge of Crown executives. The Commission also found patterns of non-cooperation with the regulator, including bullying, providing false or misleading information, and frustrating investigations.
The report also uncovered evidence of tax breaches and serious, systemic breaches of responsible gaming obligations. Crown’s board and many senior executives were found to have failed in their responsibilities to satisfy legal and regulatory obligations. The influence of Packer/CPH, which prioritized profit over other motives, as found in the Bergin Inquiry, was confirmed in this Royal Commission.
Despite these findings, the Commission believes that an immediate cancellation of the licence would not be in the interests of the Victorian community due to the potential harm it could cause to the local economy and innocents. It recommends that Crown be allowed to continue operating under the oversight of a special manager for two years, during which comprehensive reforms must be undertaken. The Commission has made 33 recommendations for Crown to address, including improvements to the powers of the regulator, prevention of money laundering, unpaid casino tax, penalties, and responsible service of gaming.
The government of Victoria has accepted the findings and plans to implement the priority recommendations of the Commission. It has also introduced the Casino and Gambling Legislation Amendment Bill 2021 to impose additional measures and oversight on Crown. The bill establishes a special manager with extensive powers to oversee Crown’s operations and grants access to all areas of the casino and its records. Stephen O’Bryan QC is proposed to be appointed as the special manager. The bill will also prohibit Crown from dealing with junket operators and remove restrictive provisions that hinder regulatory changes without compensation.
If Crown fails to make sufficient progress during the two-year period, its licence could be automatically cancelled. The bill also proposes increasing the maximum penalty for breaches of the law under the Casino Control Act 1991 to $100m to ensure meaningful consequences. The Victorian Gambling and Casino Control Commission would be established to provide dedicated focus on the casino and strengthen the powers of the regulator.
Crown is currently reviewing the report and the government’s response, and pledges to work cooperatively and constructively with the Victorian Government.
