Music mogul Matt Gudinski banned from Crown casino over white powder find

Prominent entertainment industry figure and high-roller gambler Matt Gudinski was banned from Crown casino for three months after staff found white powder in his luxury hotel room.

Three former Crown staff, speaking on the condition of anonymity because they signed non-disclosure agreements, said Gudinski was issued a withdrawal of licence notice, which effectively suspended him from entering the casino complex from December 19 until March 13.

Matt Gudinski served a three-month suspension from Crown.

Gudinski was not issued with an exclusion order, which would have required notification to the Victorian Gambling and Casino Control Commission (VGCCC).

The incident occurred while the company’s licence was under review over the casino’s involvement in widespread criminal activity.

The Mushroom Group chief executive is one of Crown’s biggest local gamblers. The son of late Australian music industry legend Michael Gudinski regularly gambled hundreds of thousands of dollars a night, and his turnover at Crown’s tables was incorporated into the company’s budget forecasts, according to the former employees.

Crown Melbourne.Credit: Carla Gottgens

A spokeswoman for Gudinski confirmed he was made aware of a “substance” that was found in a room booked under his name.

“In line with Crown policies, he accepted responsibility, and the subsequent three-month withdrawal of his licence,” the spokeswoman said. “It is important to note that there has been no suggestion of illegal activity by Mr Gudinski. His licence has since been reinstated.”

Less than two weeks after Gudinski’s suspension expired, VGCCC chair Fran Thorn announced that Crown Resorts would retain its exclusive licence to operate the Melbourne casino.

In March, Thorn praised the company’s response to a series of damning findings by two royal commissions, including repeated breaches of laws aimed to curb money laundering and terrorism financing.

“The commission is satisfied the systemic failings at Crown Melbourne are a thing of the past ... there was no evidence of maladministration or illegal or improper conduct indicative of the serious and systemic failures previously identified by the royal commission,” Thorn said on March 26.

In 2021, a Victorian royal commission recommended Crown Melbourne be given two years to overhaul its casino empire under the control of a special manager, after concluding the company’s conduct was “illegal, dishonest, unethical and exploitative”.

Crown’s failure to notify authorities of a suspicious substance found in a patron’s room comes despite the sweeping reforms implemented by then-Crown Resorts chief executive Ciaran Carruthers, which he described at the time as “one of the most complex transformations ever undertaken in Australia”.

In 2022, Carruthers also conceded that police and local gambling regulators should have been notified when former AFL champion Wayne Carey was found with a bag of white powder at a gaming table at Crown Casino Perth.

Then-Crown boss Ciaran Carruthers (right) said police should have been called when Wayne Carey was found with white powder at a gaming table in Perth in 2022.Credit: AAP, Simon Schluter

At the time, Carruthers confirmed the company’s policy would be reviewed to “ensure incidents of this nature are handled in accordance with the very highest of expectations and standards, and my expectations are aligned with those of the police commissioner and gaming and wagering commissioner”.

“Crown has, and will continue to have, a zero tolerance approach to any form of illicit or inappropriate behaviour,” Carruthers said in a statement on September 8, 2022.

Carey insisted the bag contained a legal painkiller, but was handed a two-year ban by Crown Resorts.

In the Gudinski incident, the luxury Crown Towers suite where the white powder was found was provided to him on a complimentary basis.

Gudinski holds a black card under Crown’s rewards program and usually plays blackjack in a private salon in the Mahogany Room. The 39-year-old multimillionaire is also a regular at the casino’s baccarat tables and poker machines.

The former Crown employees said Gudinski was often involved in marathon gambling sessions, particularly at the former Salon 23 before its closure in April.

His status as an “Ultra Black” member also provided him with access to free premium alcohol while he gambled.

This masthead does not suggest the white powder belonged to Gudinski, or that he engaged in any criminal activity.

Craig Walsh, former executive general manager of security and surveillance at Crown, told the Royal Commission into the Casino Operator and Licence in June 2021 that the company “never had security on level 39 or in any of the premium areas” because management didn’t want them there.

Crown Resorts general manager of VIP services Tom Rickard declined to comment when contacted by this masthead.

Crown Resorts said in a statement: “This matter was reported to Victoria Police and managed in accordance with Crown’s policies, operating procedures and code of conduct.”

A company code of conduct, implemented by Carruthers, urges a “speak up” culture among staff.

The code says: “We take steps to avoid any association with individuals or groups who are known to be, or reasonably suspected of being, involved in unlawful or improper activities given that such associations may reflect adversely on Crown’s reputation in the community.”

At the time that Crown’s licence was renewed, Crown Melbourne chief executive Mike Volkert said the casino was the safest venue in Victoria to gamble.

“We know the work doesn’t stop here, and we are committed to delivering the highest industry standards and putting the welfare of our guests at the forefront of decision-making, day in and day out,” he said.

A VGCCC spokesperson said criminal conduct alleged to have occured in the casino complex was a matter for Victoria Police.

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