By Cameron Houston
Crown Casino has bypassed regulatory scrutiny by banning thousands of patrons from its Melbourne venue using a contentious method, despite explicit warnings from the gambling watchdog.
Over the past decade, Crown management has increasingly relied on a practice known as a withdrawal of licence – known in the sector as WOLs – to prevent patrons from entering the gaming complex, including hotel and retail areas.
Crown casino had issued more than 3000 withdrawal-of-licence notices to patrons in 2022.Credit: Luis Enrique Ascui
Sources at Crown, speaking anonymously because of concerns for their employment, said management also had the option of serving members of the public with exclusion orders under the Casino Control Act.
An exclusion order can only be made against a person found to have misbehaved in the venue’s gaming areas, but must be referred to the Victorian Gambling and Casino Control Commission.
Casino management prefers to issue WOLs rather than exclusion orders – to avoid scrutiny from the regulator, a source familiar with the process said.
Stephen O’Bryan highlighted a lack of clarity in when Crown uses withdrawal-of-licence notices rather than exclusion orders.Credit: The Age
In 2022, more than 3000 patrons were issued with withdrawal-of-licence notices, which do not have to be reported to the Victorian Gambling and Casino Control Commission. The notices, which cannot be appealed, were handed out for a range of misconduct, including abuse of casino staff, assault, theft, drug possession and leaving children unattended.
Crown was warned about the practice by Special Manager Stephen O’Bryan, KC, appointed to monitor the Southbank casino’s operations following a string of damning findings by the Finkelstein Royal Commission.
The former Victorian Commission for Gambling and Liquor Regulation previously told Crown that it “should use the statutory exclusion order scheme to ban or prohibit a person from entering the casino, rather than using withdrawal of licences,” according to a report by O’Bryan in 2023.
However, O’Bryan referred to a Crown internal audit that revealed a 300 per cent increase in the number of withdrawal of licences issued between 2020 and 2022.
“Crown Melbourne and Crown Resorts policies contain different definitions in relation to exclusion orders, involuntary exclusions and withdrawal of licences. There is a lack of clear criteria guiding the decision to issue a WOL rather than an exclusion order,” O’Bryan’s interim report from 2023 said.
The Age requested data regarding the number of withdrawal of licences issued over the past five years, but was refused by Crown.
The Victorian Gambling and Casino Control Commission also refused a Freedom of Information request – with the regulator citing “secrecy provisions” that apply exclusively to the Melbourne casino.
A Crown insider said the withdrawal of licences, which are a type of common law ban, continued to be widely used for members of the public found to have breached the venue’s code of conduct.
The practice has also raised concerns about fairness, with different bans imposed for similar offences, amid allegations high roller gamblers get favourable treatment from management.
In October last year, The Age revealed music industry mogul Matt Gudinski was banned for three months, after white powder was discovered in a luxury suite booked in his name.
Gudinski was issued with a withdrawal-of-licence notice that effectively suspended him from entering the casino complex from December 2023 until March last year. The white powder was never identified and there is no suggestion the Mushroom Group chief executive engaged in any criminal activity.
Gudinski is one of Crown’s biggest local gamblers and was immediately welcomed back to the casino’s Mahogany Room after serving the brief ban.
A Crown source said other gamblers had been issued with withdrawal-of-licence bans of up to five years, after powder or pills were found in their possession.
In 2022, former AFL star Wayne Carey was found with a suspicious white powder at a gaming table at Crown Casino Perth. He was handed a two-year ban, despite insisting the bag contained a legal painkiller. It is unknown if Carey received a withdrawal of licence or an exclusion order, and the incident occurred in a different state, but Crown’s handling of the incident reveals significant discrepancies.
“Crown’s decision to issue a withdrawal of licence can have a significant impact on the affected individuals, who may make complaints if they feel there is a lack of transparency or confidence in Crown’s decision making,” said O’Bryan in his 2023 report.
A Crown spokesman did not respond to questions from The Age, but released a statement.
“All guest withdrawal of licence and exclusion decisions relating to unacceptable behaviour are made in accordance with our Security Banning Order policy which is overseen by the executive general manager – security services and are submitted to the VGCCC as part of daily reporting.”
A VGCCC spokesman, however, said that it did not have any oversight of withdrawal-of-licence notices issued by Crown. “Where an individual has been issued an exclusion order, the VGCCC expects Crown to comply with its reporting requirements,” he said.
The Morning Edition newsletter is our guide to the day’s most important and interesting stories, analysis and insights. Sign up here.