VGCCC fines Crown Melbourne US$14.6m for breaching casino tax obligations

The VGCCC has taken disciplinary action against Crown Melbourne for improper tax deductions and concealment of information.

Australia.- The Victorian Gambling and Casino Control Commission (VGCCC) has fined Crown Melbourne AU$20m (US$14.6m) for improper tax deductions and concealing vital information. The fine comes after an investigation by the state’s Royal Commission, which found Crown had falsely claimed tax deductions by including promotional expenses as winnings paid out.

The Royal Commission found a document in disclosed files provided by Crown for other purposes that revealed the deliberate attempt to hide the deductions from the VCGLR’s predecessor. Crown acknowledged its wrongdoing and paid around AU$61.5m to the State of Victoria, covering unpaid tax of approximately AU$37.4m and penalty interest of around AU$24.1m.

VGCCC chair Fran Thorn said: “Crown and other gaming licensees have important obligations to pay gaming taxes to the State. Not only did Crown breach its obligations by claiming tax deductions to which it was not entitled, but Crown also made significant efforts at concealment.

“The VGCCC will not tolerate this behaviour. We expect licensees to comply with their tax obligations and to be transparent in their dealings with us. We have today imposed a significant fine of $20 million on Crown to send a clear message that this type of conduct will be met with strong disciplinary action. This fine also sends an important message to other gambling operators about the importance of complying with their obligations to pay gambling taxes and the need for frank and open dealings with the regulator.” 

The VGCCC has taken disciplinary action against Crown Resorts four times since the Royal Commission report. The last time was in April when the regulator fined Crown AU$30m (US$20m) for allowing patrons to gamble by depositing bank cheques made out to themselves.

Shortly after the announcement, Crown Resorts issued a statement saying: “These historical breaches, decisions and actions have no place at Crown, and under new ownership and leadership, we are committed to an open, constructive, and transparent relationship with our regulators and stakeholders, as well as improving internal controls and our regulatory reporting requirements.”