By Amelia McGuire and Broede Carmody
Crown Resorts will keep the licence to operate its flagship Melbourne casino, two years after it was disgraced following two scathing royal commissions and a state inquiry that found it failed to curb money laundering and terrorism financing across its three casinos for years.
The Victorian Gambling and Casino Control Commission said on Tuesday it was “clearly satisfied” Crown Melbourne should keep its state casino licence and that it was in the public interest for it to do so.
The Victorian regulator has established a specialist casino division dedicated to overseeing Crown Melbourne.Credit: Luis Enrique Ascui
This means the casino giant has passed its first regulatory test since it was bought by private equity giant Blackstone for $7.9 billion in 2022.
Commission chair Fran Thorn said the Victorian regulator was “clearly satisfied” Crown Melbourne was fit to continue operating on the basis of three key considerations: the findings of special manager Stephen O’Bryan, the regulator’s own determination, and Crown’s commitment to its transformation plan.
“Today, the commission is satisfied the systemic failings at Crown Melbourne are a thing of the past,” Thorn said.
“There was no evidence of maladministration or illegal or improper conduct indicative of the serious and systemic failures previously identified by the royal commission, and these failings had been addressed.”
‘Today, the commission is satisfied the systemic failings at Crown Melbourne are a thing of the past.’
Victorian Gambling and Casino Control Commission chair Fran Thorn
Thorn said Crown had introduced extensive reforms to prevent or reduce gambling harm, financial crime and money laundering at its venues, and had also addressed its systemic risk-management failures and strengthened its regulatory framework.
Crown will be required to continue implementing its transformation plan under a direction from the regulator, which is set to be issued later on Tuesday.
“We are determined Crown is not and will never be too big to fail,” Thorn said, unveiling a range of strengthened enforcement powers available to the commission if Crown commits further breaches. The regulator has also established a specialist casino division dedicated to overseeing Crown Melbourne.
The decision means Crown Melbourne – Victoria’s largest single-site employer – will operate independently from June, with special manager O’Bryan set to retire. The group has injected $200 million into reforming the overall business since 2021.
Victorian Gambling and Casino Control Commission chair Fran Thorn on Tuesday.Credit: AAP
Crown Melbourne chief executive Mike Volkert said it was now the safest venue in Victoria for gambling.
“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.
Crown Resorts chief executive Ciaran Carruthers welcomed the regulator’s decision, and said the group had “pioneered one of the most complex transformations ever undertaken in Australia”.
Alliance for Gambling Reform chief executive Carol Bennett said while Crown’s transformation plan had been a step forward, the entire gambling sector should be subject to tougher rules, such as cashless gaming.
‘For those people who’ve been harmed … I think this could be a slap in the face. It’s important to remember no individual has been held to account.’
Gambling expert Charles Livingstone
“What we are seeking is that the standards that now apply to Crown will also apply to pubs and clubs across Victoria,” Bennett said.
“If that doesn’t happen, the problems we saw at Crown will shift into the community. We’re creating an uneven playing field.”
Deakin University public health professor Samantha Thomas said it was not yet clear if the strategies announced by Crown and the regular would prevent gambling harm.
“A clear gap is protocols and agreements that would allow independent researchers access to the casino,” Thomas said. “This would include the release of data for independent analysis to ensure that strategies implemented are actually preventing harm from the casino’s products and practices”, which she said had the potential to create “significant health and social harms for individuals, families and communities”.
Victorian Gaming Minister Melissa Horne said she had spoken to Volkert on Tuesday and made it “perfectly apparent” the government would not hesitate to impose further conditions on Crown if required.
Opposition gaming spokesman Danny O’Brien called on the Allan government to publicly release the special manager’s final report.
Crown was found unfit to run its Southbank premises after a “disgraceful” litany of legal and ethical breaches were exposed by a 2021 royal commission, but it did not lose its licence to operate.
Commissioner Ray Finkelstein instead recommended Crown be given two years to reform itself under a government-appointed special manager. He also ordered former major shareholder James Packer to sell down his 37 per cent stake in Crown to less than 5 per cent by September 2024.
Private equity giant Blackstone bought Crown’s three casinos in Melbourne, Sydney and Perth soon after and launched a cultural overhaul under the eye of its three respective state regulators.
The criminality was first exposed by a lengthy investigation by this masthead and 60 Minutes in 2019, which linked Crown to drug and sex traffickers, as well as exposing Chinese influence on its operations.
United Workers Union organiser Dario Mujkic, who represents Crown employees, said Tuesday’s announcement had brought years of job uncertainty to an end.
“We now look forward to working with Crown management to build on this stability to make sure Crown Melbourne is the best place to work for hospitality workers in Victoria,” Mujkic said.
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