The controversial casino operator, Crown, has recently incurred a significant fine for violating legal requirements regarding the use of cheques at its Melbourne Casino. The casino allowed patrons to gamble using personal cheques before they had cleared, which goes against the Victorian Casino Control Act 1991. This act prohibits the use of cheques at casinos, except under certain circumstances. The purpose of this policy is to prevent casinos from extending credit to gamblers and to combat money laundering.
The large fine imposed on Crown is a result of the casino’s long-standing practice of accepting blank cheques, which subverted important controls. The Victorian Gambling and Casino Control Commission (VGCCC) has uncovered this undocumented practice and will continue to investigate other irregular procedures at Crown. Chairperson Fran Thorn emphasized that the casino will not be allowed to conceal its practices to avoid scrutiny, as practices like accepting blank cheques expose Crown to the risk of money laundering, put patrons at risk of harm, and compromise the integrity, safety, and fairness of the casino.
The VGCCC’s enforcement action was prompted by findings from the 2021 Royal Commission into Crown Melbourne. Commissioner Ray Finkelstein deemed the company “unsuitable” to hold a casino license based on these findings, although the cancellation of the license was not immediate. The VGCCC expressed concern about the Royal Commission’s discovery that Crown likely accepted blank cheques in exchange for chips. Finkelstein’s report suggested that Crown would write the amount of debt an individual had accumulated on the cheque after the conclusion of their gambling session. While the VGCCC considers such a practice to be a serious violation of the Act, there was insufficient evidence to establish that the casino engaged in this specific activity.
The VGCCC has imposed $230 million in regulatory penalties on Crown in total. In response, the commission has ordered Crown to halt the blank cheque practices at its Melbourne casino and conduct a review of its current policies and procedures for accepting such cheques. This marks the third time that the VGCCC has issued a financial penalty to Crown as a result of misconduct uncovered by the Royal Commission. In May 2022, the operator was fined $80 million for breaches related to its China Union Pay processes, and in November of the same year, it received a $120 million fine for failures in its responsible gaming obligations.
Crown Melbourne has accepted the outcome from the VGCCC and acknowledges that these practices have ceased. The company has implemented significant improvements to minimize and prevent risks across its business. Under new ownership and leadership, Crown Resorts’ Future Crown program is focused on bringing about comprehensive reforms and exceeding the expectations of stakeholders and the community. The company is committed to complying with the directions issued by the VGCCC and working collaboratively with the commission and the government to address the issues raised during the Victorian Royal Commission.
