Crown Resorts has faced an AU$30-million fine by the gambling regulator in Victoria for allowing punters to cash back cheques issued to themselves – a move that only made gambling-related harm worse and probably helped the money launderers’ criminal infiltration in the company’s casino.
The Victorian Gambling and Casino Control Commission (VGCCC) also shared its concerns that Crown Resorts was likely to have permitted casino patrons to use blank cheques to gamble at its Southbank casino. As the watchdog revealed, these fears were triggered by the investigation held by the Royal Commission into the gambling giant. Currently, the use of cheques is strictly regulated because of fraud and money laundering risks associated with them.
The Royal Commission’s probe found that Crown Resorts had practically allowed gamblers to use bank cheques made out to themselves in return for gambling chips issued before the clearance of the cheque. The company had been using this practice between 1994 and 2021, with the Victorian Gambling and Casino Control Commission estimating that cheques worth more than AU$1.5 billion may have been subjected to the practice in that 27-year period, although the figures were based on uncertain estimates referred to the submissions of Crown Melbourne.
The monetary penalty faced by the Australian gambling behemoth is linked to the Royal Commission’s findings into the casino that was found unsuitable to hold an operating permit. The company, however, was not stripped of its licence for the venue and was given until the end of the year to prove it is fit to operate the casino.
Unfair Bank Cheque Practice Continued at Crown Melbourne between 1994 and 2021
At the time when the fine was unveiled, the chair of the Victorian gambling regulator, Fran Thorne, noted that the unfair practice used by Crown Resorts was a form of credit that was not allowed in the state because the use of cheques could disguise illegal money laundering activities.
Apart from that, Ms Thorne explained that the use of the aforementioned cheques was also an undocumented practice, and the casino licence holder was required to document its entire processes, so that the state’s regulator is aware of what the operator did and was able to control its actions.
As the Victorian Gambling and Casino Control Commission explained, it had been unable to substantiate suspicions of the use of so-called blank cheques but, still, it had given instructions to the casino operator to suspend the unlawful practice. Apart from imposing the AU$30-million fine, the gambling watchdog is also set to review Crown Resorts’ current policies and procedures on accepting bank cheques. The VGCCC will also investigate whether the Australian gambling giant’s Melbourne casino had used any other undocumented practices over the years.
This is not the first time Crown Resorts faces a monetary fine for certain transgressions. In 2022, the Victorian gambling regulator imposed an AU$120-million fine on the casino operator for violating responsible gambling rules and regulations. The company also faces a fine exceeding AU$1 billion that was issued by the Australian Transaction Reports and Analysis Centre (AUSTRAC).
Reportedly, Crown Resorts has accepted the latest fine imposed by the VGCCC and confirmed that the foul practices had been ended, with the company having implemented significant improvements aimed at gambling-related risk prevention and reduction.
- Author
Olivia Cole
