Nobody could objectively argue that Crown Resorts did not have a miserable 2020 and unfortunately for the company, 2021 isn’t shaping up to be much better. While still fielding a barrage of investigations and a wave of bad press, Crown has now been hit with an AUD$1 million, courtesy of the Victorian Commission for Gambling and Liquor Regulation (VCGLR).
A history of transgression
The financial penalty is levelled specifically at Crown Melbourne in Victoria, primarily due to its questionable relationships with foreign high rollers. The VCGLR has alleged that Crown Resorts was remiss in performing its due diligence when dealing with various junket operators. To put it another way, the venue seemed eager to associate with unscrupulous individuals, particularly if the venue saw that these dealings would bring in foreign whales.
The VCGLR Chairman, Ross Kennedy said, “We concluded that in respect of the analysed individuals, the processes implemented by Crown Resorts Limited were not robust. This failure meant it was unclear how certain decisions were reached by Crown Resorts Limited and whether such decisions were made with due regard to Crown Resorts Limited’s regulatory obligations.”
“It is the first time that Crown has been fined the maximum fine available to the Commission under the Casino Control Act 1991.”
Crown Melbourne also received a letter of censure from the VCGLR that effectively bans it from any junket operations at the venue. This restriction will remain in place until the company can guarantee that its Melbourne operation “remains free from criminal influence and exploitation.”
Ultimately, the penalty may be of little consequence as Crown Resorts has already moved to distance itself from junket operators in the wake of the scandal in Sydney. However, it does heap more bad publicity onto Crown’s growing pile of misfortune.
Nothing fine about the fine
As with most corporate penalties, the price that Crown must pay has drawn praise from some quarters, but some feel the punishment is severely inadequate and well overdue.
Samantha Ratnam, the local leader of the Australian Greens, stated that fine is “too little, too late.”
She argued that it should not have needed “years of damning allegations and the announcement of a royal commission” before authorities stepped in.
“While the fine itself will likely be nothing more than loose change to Crown Resorts Limited, we hope this provides the government with yet another sign that it’s time to break up the gambling giant for good,” she said.
Anti-pokie advocate and independent parliamentarian, Andrew Wilkie, has voiced his criticism of the penalty. He referred to it as “laughable,” and said that the VCGLR “should be handing out fines in the tens or hundreds of millions of dollars.”
Far from over
Some accusations have characterised the fine as a performative PR stunt by the VCGLR. The Commission itself has faced months of criticism due to its perceived inertia, as many disapproved of its decision to delay any enforcement actions until the New South Wales regulators had completed their investigation. In the end, NSW concluded that Crown Resorts was unsuitable to run a casino.
Tensions were running particularly high in November of 2020 when Victorian Opposition Leader Michael O’Brien publicly lambasted the VCGLR over its inaction, saying,
“We have not seen Victoria’s regulator lift a finger to test those claims the same way the NSW regulator has done. It’s time for Victoria’s regulator to get out of the kennel and start being a watchdog, not a lap dog.”
The VCGLR’s investigation is still in progress along with that of the government of Victoria. The state revealed that a Royal Commission would be initiated following the release of the Bergin Report from NSW. Another investigation is also being conducted by AUSTRAC that will zero in on how the casino giant dealt with politically exposed and high net worth individuals.
For now, Crown Melbourne can still operate, but its fate is still uncertain as the findings of the Royal Commission, which are due by the year’s end, could spell disaster for the venue.
