New Investigation into Crown Australia Casino Launched

The Australian Financial Review has reported that Crown Australia Casino is currently under investigation by the Victorian Commission for Gambling and Liquor Regulation (VGCLR). While it is important to note that the allegations against Crown have not been proven true, the regulators are actively looking into them. The focus of the investigation centres around allegations that a minor was allowed onto the gaming floor, raising concerns about customer safety and the management’s role in ensuring compliance.

The VGCLR, responsible for overseeing Crown Melbourne, has launched an investigation into the allegations surrounding the presence of a minor on the gaming floor. Sources close to the investigation have revealed that the regulator is specifically looking into this matter. While the investigation is ongoing, it is essential to remember that the allegations have not been substantiated.

In response to the investigation, Crown has engaged external counsel to conduct an independent review of the allegations. This action aligns with Crown’s governance protocols and demonstrates the company’s commitment to addressing the concerns raised by the VGCLR.

Crown Melbourne operates under strict conditions set by the VGCLR, which granted the casino a special license after a royal commission found the group unsuitable to hold a casino license. The royal commission, led by former Federal Court judge Raymond Finkelstein QC, prompted the appointment of a special manager with the power to direct the casino’s management and make recommendations regarding its gaming license.

The Finkelstein inquiry also led to significant changes within the company. James Packer, the billionaire backer of Crown, was compelled to sell his 37% stake due to the commission’s findings that Crown was aware of potential money laundering activities. This sale aimed to address the deficiencies highlighted by the inquiry and restore public trust in the company.

In addition, Crown faced intense regulatory scrutiny, resulting in a $450 million fine imposed by the financial crimes regulator AUSTRAC for breaches of anti-money laundering and counterterrorism laws. The company has also implemented improved compliance measures to prevent future violations and ensure the integrity of its operations.

Ciaran Carruthers, the current Chief Executive of Crown, has been at the centre of the investigation. Carruthers was hired by Blackstone after the firm acquired Crown, which was previously controlled by the Packer family. With two decades of experience in Macau, Carruthers brings a wealth of knowledge in casino operations to his role at Crown. He previously held key positions in renowned casinos such as Venetian Macau and Wynn Macau, where he served as the Chief Operating Officer.

Carruthers’ appointment reflects Crown’s commitment to bringing in experienced leaders to navigate the challenges the company faces. Under his leadership, Crown has been proactive in addressing the regulatory concerns and ensuring compliance with industry standards.

The ongoing regulatory scrutiny and compliance measures have had a significant impact on Crown’s financial performance. In October, the company reported a loss of $199 million. This loss can be attributed to the costs associated with implementing improved compliance measures and paying pecuniary penalties. However, it is worth noting that the financial performance across both periods was also affected by the COVID-19 pandemic, which posed additional challenges to the industry as a whole.