For the third time this year, the Victorian Gambling and Casino Control Commission (VGCCC) is launching an investigation into Crown Resorts’ operation related to the use of blank cheques by members of the casino. If the investigation shows that gamblers take advantage of such schemes, the company may face a fine as large as AU$100 million.
After an investigation by a royal commission, it was discovered that Crown was giving its customers credits that were used for gambling at the company’s Melbourne casino. Since such activities are contradicting the law in the state of Victoria, another investigation into Crown’s operations was launched.
Crown Under Investigation Due to Questionable Blank Cheque Practices
There were several findings that sparked the recent regulatory action taken against Crown. One of them was the casino using bank cheques instead of gambling chips. These types of cheques are typically issued in the name of a bank and are often just as suitable for gambling as cash. Another controversial practice of the casino was giving players chips in return for blank cheques that would be then paid to the gaming company.
The casino used to allow players to start their gambling experience at Crown Melbourne with empty cheques and then write down the sum they owed the casino at the end of their gambling sessions. The chair of the VGCCC, Fran Thorn, commented that the state law implemented the prohibition of gambling credit as a means of protecting gamblers from overspending. Crown’s use of blank cheques, however, was in breach of that law.
Crown Ready to Cooperate during New Investigation by State Regulator
Following the Victorian royal commission report, a spokesperson for Crown ensured the gambling entity is ready to cooperate with the regulator and provide any information requested by the VGCCC.
Crown recently went under serious reforms in its management to ensure that it will not repeat previous compliance failures, with the main focus of the gaming entity remaining on providing safe and responsible gambling, added the spokesperson.
The royal commission’s investigation was led by ex-federal court judge Ray Finklestein. Last October, the inquiry that was reported to parliament also sparked two additional legal actions against Crown. One of them came as a result of findings about Crown’s responsible gambling failures, allowing players to gamble for 24 hours straight.
In May, the Victorian gaming regulator imposed an AU$80 million fine on Crown. The financial penalty came as a result of findings about Crown allowing its patrons to disguise their gambling spending as money used for accommodation at Crown’s hotel.
The royal commission deduced that Crown was unfit to keep its casino licence in Melbourne so a special manager was suggested to be employed to help the licence compliance. Meanwhile, the royal commission also decided that the Victorian Commission for Gambling and Liquor must be replaced. As a result, the VGCCC took upon the role of a gaming regulator in the state of Victoria.
- Author
Olivia Cole
