VGCCC fines Crown Melbourne US$20m over illegal bank cheques

The VGCCC has imposed a fine against Crown Melbourne for allowing patrons to gamble by depositing bank cheques made out to themselves.

Australia.- The Victorian Gambling and Casino Control Commission (VGCCC) has announced a new disciplinary action against Crown Melbourne. A penalty of AU$30m (US$20m) will be issued for allowing patrons to gamble by depositing bank cheques made out to themselves, and not to Crown.

The regulator said this was “a serious contravention because it was undocumented, long-running and subverted the important controls on the use of cheques at the casino.”

Except in limited circumstances, the Casino Control Act 1991 (Vic) prohibits the use of cheques at casinos. The purpose of the prohibition is to prevent gambling credit from being extended to gamblers or money laundering from taking place.

The regulator expressed concern over the findings of the state’s Royal Commission, which suggested that Crown Resorts may have accepted blank cheques as payment for gambling chips. According to the Commission, this practice involved Crown Resorts filling out the cheque with the amount of a patron’s debt after they had finished gambling.

The VGCCC said it carefully examined the evidence and determined that there was not enough proof to confirm that Crown Resorts had engaged in this practice. Nevertheless, the VGCCC has decided to issue a series of directives to Crown Resorts. 

These include banning bank and blank cheque practices at the Melbourne casino, a review of Crown’s current policies and procedures on accepting bank cheques and an investigation of any undocumented practices at the casino. 

VGCCC chair Fran Thorn said: “This is the second time we’ve taken action on undocumented practices at the casino, and we will investigate further to ensure there are no more. To be clear, we will not allow the casino to conceal its practices to avoid scrutiny.

“Practices like accepting bank cheques expose Crown to the risk of money laundering, put patrons at risk of gambling harm, and compromise our ability to ensure the casino runs with integrity, safety and fairness.”

A Crown Resorts spokesperson said the company accepted the outcome and that such practices have ceased as the company has implemented “significant improvements to reduce and prevent risk across its business.”

The company said: “Under new ownership and leadership, our Future Crown program is driving whole-of-company reform as we continue to uplift our culture and build a Crown that exceeds the expectations of our stakeholders and the community.

“We will comply with the directions issued and work constructively with the VGCCC and the Government to address this and other issues raised as part of the Victorian Royal Commission.”

The VGCCC has taken disciplinary action against Crown Resorts three times since the Royal Commission report. In May 2022, the VGCCC fined Crown AU$80m (US$57.4m) for its China Union Pay process, while in November 2022, Crown was fined AU$120m (US$77.2m) for failing to comply with its responsible service of gambling obligations.