Crown Resorts has been slapped with a $1 million fine—its second—by the Victoria Commission for Gambling and Liquor Regulation (VCGLR). Australia’s biggest casino operator failed to comply with its regulatory obligations regarding junket operations and also ignored an order to stop doing business with one agent who was deemed unsuitable.
“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,” said VCGLR Chairman Ross Kennedy. “The VCGLR expects its regulated entities to be proactive in their compliance with regulatory requirements, and firm action will continue to be taken against those that willfully disregard or disobey directions of the regulator.”
According to the Sydney Morning Herald, the VCGLR is considering further action may in the matter. It noted that the newly amended gambling legislation has now passed the Victorian parliament and has increased the maximum possible fine from $1 million to $100 million.
The incidents in question took place in 2015 and 2016. Disciplinary proceedings conducted by the VCGLR after January 1, 2022, would occur under the stronger regulatory obligations imposed by the amending act, including the increased maximum penalty.
Crown has been accused of numerous lapses in corporate governance as well as money laundering through its casinos. It has been found unsuitable to hold a license in both Sydney and Melbourne. A separate royal commission in Australia has yet to report its findings.
“Crown will consider the findings of the VCGLR carefully, with a view to continuing to advance its reform agenda and taking into consideration all available learnings,” Crown CEO Steve McCann said in a statement following the announcement of the latest fine.
