The Victorian Gambling and Casino Control Commission (VGCCC) has launched yet another investigation into the Crown Melbourne casino, this time with regards to practices involving banking and blank checks that were uncovered during the recent Royal Commission.
According to the VGCCC, the inquiry revealed that Crown previously allowed patrons to exchange both written and blank checks for chips and gambling credit, which is prohibited under state law.
The agency has notified Crown that it is further investigating the matter, and has sent requests for relevant information pertaining to the allegations. If it wishes to, the VGCCC could levy another massive fine against the casino, this time up to US$68 million thanks to recent regulatory changes.
These allegations are separate from the China UnionPay bank card debacle, in which the casino allowed Chinese patrons to transfer funds for gambling via UnionPay cards, only to then disguise the transactions as hotel and room expenses. Those violations have already resulted in a $54 million fine for Crown Melbourne.
Fran Thorn, VGCCC chair, told Inside Asian Gaming that “The Casino Control Act establishes restrictions on Crown’s financial interactions with its patrons,” and said that the restrictions are important “because they protect patrons from gambling beyond their means and guard the Melbourne Casino against criminal influence and exploitation.”
He added, “The Royal Commission found that Crown adopted practices involving the use of blank cheques and bank cheques that breached these important restrictions.”
In the midst of the recent investigation, Crown’s newly appointed CEO Ciarán Carruthers has pledged to reform the company’s shortcomings moving forward, including its financial operations as well as its history of courting Chinese VIPs.
Carruthers told the Age newspaper that there has “probably been an overreliance on the Chinese tourists in Australia,” and said that his company “will not be going down the path of the old junket model.”
The former Wynn Macau executive added that because Crown is now owned by the U.S.-based firm Blackstone Group, it will have less reliance on foreign markets and less temptation to fall back into dubious practices.
