Gaming watchdog issues ruling after two-year reprieve to reform

The gaming giant has been allowed to keep operating its Crown Melbourne casino amid revelations of money laundering and organised crime.

Crown’s Melbourne casino. Picture: NCA NewsWire / David Crosling

Crown Resorts will be allowed to retain its Melbourne casino licence, but is on notice from the regulator that Victorians expect it to be “run honestly and free of criminal influence.”

The fate of Crown’s lucrative casino licence had been in the balance after revelations the business had been facilitating money laundering and organised crime. It was given two years to reform the business to prove it remained suitable to continue to hold the licence.

Announcing the decision in favour of Crown suitability this morning, Victorian Gambling and Casino Control Commission chair Fran Thorn said the commission was satisfied that the systemic failings of Crown Melbourne were a thing of the past. But Ms Thorn noted the significant turnaround does not mean the casino would never slip up again.

“And when this happens, we will act and we expect Crown Melbourne to act,” said Ms Thorn. “Ongoing suitability will be significantly demonstrated by how Crown responds to instances of operational failure.”

The decision followed a report completed in January by Stephen O’Bryan KC, the special manager appointed by the Victorian government to oversee Crown Melbourne following the Victorian royal commission’s earlier damning findings into the group.

Crown Resort welcomed the decision and noted the company had worked diligently over the past two years to implement meaningful change to transformed the business.

VGCCC chair Fran Thorn says the reform process to a world leading example will take time. Picture: David Crosling/NCA NewsWire

Ms Thorn said the royal commission into Crown had indicated that it expected a full transformation of the casino group to become a world standard example of excellent practice.

“While the special manager is unequivocal in his assessment that Crown is successfully redressing past wrongs, full rectification to world leading excellence is a longer and necessary task,” she said.

She said Victorians were entitled to have confidence that Crown Melbourne casino is being “run honestly and free of criminal influence and exploitation”.

“In the terms of the privilege of an exclusive licence, Victorians have the right to expect Crown Melbourne will never again prioritise profit ahead of the safety and well-being of its patrons and staff,” Ms Thorn said.

Mr O’Bryan had been tasked with testing Crown’s reform program after the group previously facilitated money laundering and organised crime – including sex slavery and human trafficking. In considering whether Crown was suitable to hold the licence, the commission said it had regard to Mr O’Bryan’s report and as well as the findings of relevant regulators or law enforcement agencies. In June 2022, US private equity giant Blackstone acquired Crown for $8.9bn, ending James Packer’s control of the company.

Crown Melbourne chief executive Mike Volkert said the outcome was one of the most significant milestones in the property’s 30-year history. “We have worked diligently over the past two years to implement meaningful change that has truly transformed our business,” said Mr Volkert. “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 also acknowledged and recognised the efforts of Mr O’Bryan and the VGCCC. “Crown Melbourne is now the safest venue in Victoria for gaming and entertainment, and we look forward to continuing to welcome our guests,” he said.

Crown Resorts chief executive Ciaran Carruthers said that the company had pioneered one of the most complex transformations ever undertaken in Australia. “Over 10,000 pages of documentation have been submitted and 770 remediation activities have been delivered to our state regulators, fundamentally rebuilding our organisation from the inside out,” said Mr Carruthers. “Holding a casino licence is a privilege and an obligation we take extremely seriously. I am proud of what our team has accomplished, and the safe environment Crown Melbourne now operates in.”

Victorian Premier Jacinta Allan said she had faith in the regulator’s judgement to let Crown keep its licence.

“There has been an extensive independent process that has been overseen by the Victorian Gambling and Casino Control Commission,” she said.

“Out of today’s independent commissioner’s findings, if there is further work to do, we will look at that work to ensure that the illegal behaviour that we saw in the past is never allowed to happen again.”

Crown Melbourne CEO Mike Volkert.

Ms Thorn said Crown must continue to seek to earn the public trust by demonstrating its good character, honesty and integrity. This would include addressing any operational shortcomings as and when they arise. “Suitability has never been about perfection,” she said. “It is about maintaining appropriate operational vigilance, in line with its obligations, constant monitoring of crowd behaviour and enforcement of regulations.”

She said in making its decision the commission had carefully considered the reports of the royal commission, the Bergen inquiry and the West Australian royal commission into the Perth Casino. “The commission also has given full consideration to the special managers reports amounting to nearly 4000 pages of evidence,” Ms Thorn said.

“We are satisfied that the special manager has assessed all relevant matters and that a significant and reliable body of evidence supports the conclusions. The commission is clearly satisfied that Crown Melbourne is suitable to operate the Melbourne casino and that it is in the public interest for the Melbourne casino license to remain in force.”