Crown fined $30m as regulator launches fresh probe over blank cheques

Victoria’s gaming regulator has handed down fresh penalties to Crown Resorts and opened a new investigation into the Melbourne casino over its customers’ use of blank cheques.

Victoria’s new gambling regulator has hit Crown Resorts with a $30m fine, accusing the company of having “concealed” illegal practices to “avoid scrutiny” at its sprawling flagship Melbourne casino as it launches a fresh investigation into the group.

The penalty relates to historical offences revealed during Victoria’s Royal Commission into the company, and lifts the total value of fines the Victorian Gambling and Casino Control Commission has issued Crown in the past year to $230m.

It comes as Crown is effectively on probation, having until next year to prove that it is a suitable Victorian casino licence holder.

The latest fine relates to Crown allowing gamblers to deposit cheques made out to themselves – and not to Crown – even before the cheque has cleared. The practice was against laws aimed at quashing money laundering and allowing cheques to be used to extend a gambler’s line of credit.

Crown says the practice has ceased and will comply with the VGCCC’s ruling.

VGCCC chair Fran Thorn said that the cheque deposits were “undocumented, long-running and subverted the important controls on the use of cheques at the casino”.

“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,” Ms Thorn said.

“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.”

Ms Thorn was also concerned by findings from Victoria’s Royal Commission into Crown that it also accepted blank cheques in exchange for gambling chips. It was suggested at the Royal Commission that this practice involved Crown writing the amount of the debt a patron incurred on the blank cheque after the patron had finished gambling.

“However, following careful and detailed consideration, the VGCCC has decided there is insufficient evidence to establish that Crown engaged in this practice,” Ms Thorn said.

“Nevertheless, the VGCCC will issue directions to Crown to ban the bank and blank cheque practices at the Melbourne casino; require a review of Crown’s current policies and procedures on accepting bank cheques; and investigate undocumented practices at the Melbourne casino.”

Last May, the VGCCC fined Crown $80m over the use of Union Pay cards to allow gamblers to illegally transfer funds from China. Gambling is illegal in China and Union Pay (CUP) cards cannot be used for that purpose.

In November, the VGCCC hit Crown with a separate $120m fine over a 12-year spree of flouting its responsible gambling obligations – including providing patrons with devices to gamble non-stop for days.

The company – which US private equity firm Blackstone acquired for $8.9bn last year – has since embarked on extensive reform, which has included installing a new board and executive leadership, while the state government has installed former public corruption watchdog Stephen O’Bryan as a “special manager” who can veto board decisions.

A Crown spokesman said the company “accepts the outcome from the Victorian Gambling and Casino Control Commission”.

“These practices have ceased, and we have implemented significant improvements to reduce and prevent risk across our business,” he 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.”