- Published:
- Thursday, 1 September 2022 at 1:14 pm
The Victorian Gambling and Casino Control Commission (VGCCC) has commenced disciplinary proceedings against Crown Melbourne over its bank and blank cheques practices.
The VGCCC has issued a notice to Crown today, compelling it to provide information relevant to the VGCCC’s consideration of any disciplinary action it may take on these practices. This is the third disciplinary process brought against Crown Melbourne based on the findings of the Royal Commission into the Victorian Casino Operator and Licence.
The actions available to the VGCCC include:
- imposing a fine of up to $100 million
- varying the casino licence
- issuing a letter of censure to Crown and directing it to take certain steps.
The 2021 Royal Commission found these practices breached section 68 of the Casino Control Act, which prohibits extending credit to patrons in connection with any gaming or betting. These practices included:
- exchanging a bank cheque (to which the patron was the payee) for gambling chips valued at the face value of the cheque
- permitting patrons to exchange blank cheques made payable to Crown in exchange for chips used to gamble at the Melbourne casino.
Details of Crown Casino’s use of blank and bank cheques are found in Chapter 15 of the Royal Commission’s report.
VGCCC Chair Fran Thorn said:
“The Casino Control Act establishes restrictions on Crown’s financial interactions with its patrons. These restrictions are vital because they protect patrons from gambling beyond their means and guard the Melbourne Casino against criminal influence and exploitation.
“The Royal Commission found that Crown adopted practices involving the use of blank cheques and bank cheques that breached these important restrictions.”
The VGCCC will make a further announcement once it has considered Crown’s response and determined the appropriate disciplinary action.
Background
In 2021, a Royal Commission was conducted into the Victorian Casino Operator and Licence.
The Royal Commission found that Crown Melbourne is unsuitable to hold the Melbourne Casino Licence and failed to comply with several of its legislative obligations.
In response to the Royal Commission’s findings and recommendations, the Victorian Government appointed a Special Manager to supervise the operations of the Melbourne Casino for a period of two years, while Crown Melbourne attempts to reform itself. Following that two-year period, the VGCCC will decide whether Crown is suitable to regain the privilege of holding the Melbourne Casino licence unsupervised.
The Victorian Government also amended the Casino Control Act to enable the VGCCC to take disciplinary action on the grounds that the Royal Commission had found that Crown engaged in illegal conduct or serious misconduct. The amended Act now also imposes stronger regulatory obligations on Crown and increases the maximum fine the VGCCC may impose as part of any disciplinary action to $100 million (from $1 million).
On 30 May 2022, the VGCCC utilised its new enforcement powers and imposed a fine of $80 million on Crown relating to the Royal Commission’s findings that Crown had implemented its illegal ‘China Union Pay’ process.
In July 2022, the VGCCC commenced disciplinary proceedings against Crown concerning the Royal Commission’s findings about Crown’s approach to Responsible Gambling. The VGCCC is currently considering Crown’s response to these disciplinary proceedings and will make a further announcement once it has completed those considerations.
Updated