The Victorian Gambling and Casino Control Commission (VGCCC) has issued Crown Melbourne with a new AU$30 million (US$20 million) fine, this time for engaging in a “bank cheque practice” whereby patrons were allowed to gamble by depositing bank cheques made out to themselves, and not to Crown, even before the cheque had cleared.
This latest fine, stemming from the findings of Victoria’s Royal Commission into the Melbourne casino operator, takes the total amount Crown Melbourne has been fined in the past 12 months to AU$230 million (US$152 million). The company was previously fined AU$80 million (US$51 million) in May 2022 for the illegal use of China Union Pay cards for gambling transactions and another AU$120 million (US$77 million) in November for failures within its Responsible Service of Gambling obligations.
In a statement, the VGCCC pointed out that the Casino Control Act 1991 (Vic) prohibits the use of cheques at the casino, except in limited circumstances, in order to prevent the use of cheques to extend credit to gamblers or for money laundering.
The decision to issue an AU$30 million fine was made because the practice was seen as a serious contravention by being undocumented, long-running and subverting the important controls on the use of cheques at the casino.
The VGCCC said it was also concerned by the Royal Commission’s findings that Crown likely accepted blank cheques in exchange for gambling chips as well. It was suggested that this practice involved Crown writing the amount of the debt a patron incurred on the blank cheque after the patron had finished gambling, which would be a further serious contravention of the Casino Control Act.
However, the VGCCC said it has decided there is insufficient evidence to establish whether or not Crown engaged in this practice. Nevertheless, the VGCCC will issue directions to Crown to ban the bank and blank cheque practices at the Melbourne casino, require a review of Crown’s current policies and procedures on accepting bank cheques, and investigate undocumented practices at the Melbourne casino.
“This is the second time we’ve taken action on undocumented practices at the casino, and we will investigate further to ensure there are no more,” said VGCCC Chairperson, Fran Thorn.
“To be clear, we will not allow the casino to conceal its practices to avoid scrutiny. Practices like accepting bank cheques expose Crown to the risk of money laundering, put patrons at risk of gambling harm, and compromise our ability to ensure the casino runs with integrity, safety and fairness.”
In response, a Crown Resorts spokesperson said the company “accepts the outcome from the Victorian Gambling and Casino Control Commission.
“These practices have ceased, and we have implemented significant improvements to reduce and prevent risk across our business,” the spokesperson explained. “Under new ownership and leadership, our Future Crown program is driving whole-of-company reform as we continue to uplift our culture and build a Crown that exceeds the expectations of our stakeholders and the community.
“We will comply with the directions issued and work constructively with the VGCCC and the Government to address this and other issues raised as part of the Victorian Royal Commission.”
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