Crown Melbourne fined $80m over China Unionpay investigation

Crown Melbourne has received a hefty $80 million fine, with possibly more on the way, following the Victorian Royal Commission.

Crown Melbourne has been fined $80 million over its China Union Pay process, which let patrons use their credit cards to access money to gamble.

The Victorian Gambling and Casino Control Commission announced the disciplinary action on Monday over the illegal conduct.

Crown Melbourne allowed patrons to use a debit or credit card to access funds to gamble at the casino between 2012 and 2016.

The move facilitated access to almost $164 million, from which Crown derived an estimated revenue of more than $32 million.

The Royal Commission into the Casino Operator and Licence found the China Union Pay process was illegal, and in breach of the Casino Control Act 1991.

Crown Melbourne admitted the CUP process was illegal and “completely unacceptable”.

Crown Melbourne has been fined $80 million over its China Union Pay process. Picture: NCA NewsWire / David Geraghty

VGCCC chairperson Fran Thorn said while Crown deserved some credit for its cooperative approach to the disciplinary proceedings, the record $80 million fine was “appropriate and necessary”.

“Crown’s CUP process was a clandestine, deliberate process, which not only breached the Casino Control Act, but was also devised to assist patrons to breach China’s foreign currency exchange restrictions,” Ms Thorn said.

“Crown was aware of the risk that the CUP process could be illegal but decided to run that risk. In doing so, it showed no regard for upholding its regulatory obligations. Indeed, it went to some lengths to hide what it was doing.

“Crown benefited handsomely from its illegal conduct. The fine will ensure that Crown is stripped of the revenue it derived from the CUP process and will send a clear message that it must comply with its regulatory obligations.”

Crown Melbourne was found to have ‘benefited handsomely’. Picture: NCA NewsWire / David Geraghty

It’s the first time the VGCCC has used its stronger enforcement powers under legislative changes to the Casino Control Act, with the maximum allowable fine now $100 million – up from $1 million.

Crown Melbourne has also been ordered to pay the VGCCC’s costs of the disciplinary action, which are yet to be advised.

The VGCCC is also considering further disciplinary proceedings against Crown related to the other findings of the Royal Commission, which may each attract a fine of up to $100 million.

Crown may face further fines over other Victorian Royal Commission findings. Picture: NCA NewsWire / David Geraghty

In a statement, Crown said it “acknowledges its historic failings”.

“The China UnionPay process ceased in 2016. Upon becoming aware of this historical conduct, Crown’s Board immediately commissioned an independent investigation and shared the findings with the Victorian Royal Commission, the Victorian Commission for Gambling and Liquor Regulation (the predecessor to the VGCCC) and other regulators,” the company said in a statement.

The Crown Board and senior management were committed to comprehensive reform to ensure Crown delivered a safe and responsible gaming environment, the statement continued, with the company saying it continued to co-operate with the VGCCC on all matters arising from the Victorian Royal Commission Report.

Commissioner Hon. Raymond Finkelstein AO QC at Victoria's royal commission into Crown Casino in Melbourne last year. Picture: AAP / James Ross