Crown Resorts finds itself in more hot water as it was recently hit with a $1 million penalty by the Victorian gambling regulator for transgression of its rules and the operator’s failure to comply with junket tour partners vetting regulations.
A report from the Australian Financial Review revealed that the $1 million fine imposed by the Victorian Commission for Gambling and Liquor Regulation (VCGLR) was the highest possible penalty and that the commission had issued the fine due to Crown’s refusal to “cease a relationship” with an “individual junket operator and his associates”. The commission added that Crown had also not complied with the relevant internal control statement concerning junket operations.
Ross Kennedy, the commission’s chairman advised that the $1 million fine was decided on as “it reflects the serious nature of Crown’s direct disobedience”.
“The amount of this fine reflects the seriousness of this matter, particularly Crown’s conduct in failing to immediately implement the requirements of the commission’s direction to cease a relationship with an unsuitable junket operator,” Kennedy stated.
This is the second time that Crown faces a seven-figure penalty from the regulator, and with maximum penalty increases being implemented, it should hope that this is its last.
Increased Severity
The fine levied again Crown in April 2021 was due to the company failing to vet its high-roller junket tour partners for criminal links and other matters of rectitude.
Crown’s eight-year relationship with crime-linked junket operators was criticised by the Victorian regulator at the time with the commission finding that the company had failed to correctly vet its partners.
Organisations who flaunt the commission’s rules will be facing stiffer penalties this year as amendments to Victorian legislation that increase the maximum potential fine from $1 million to $100 million went into effect from 1 January 2022.
An Uncertain Future
While Crown has weathered the findings of the Bergin inquiry in New South Wales, where the operator was deemed was unfit to open its new Sydney casino and the Victorian Finkelstein royal commission, which came within a hair’s breadth of outright cancelling Crown’s Melbourne licence, it still faces further challenges. The West Australian royal commission into Crown’s Perth Casino licence is expected to report its findings report in March.
The company is additionally currently the subject of an enforcement investigation by financial crimes watchdog AUSTRAC regarding money laundering laws activities. Analysts have estimated that this could cost the company up to $100 million in fines.
