Crown Cleared To Keep Casino License

The Victorian Gambling and Casino Control Commission announced on Tuesday that Crown, the casino gaming company , will be allowed to continue holding the state’s only casino licence. This decision comes despite a Victorian royal commission in 2021 finding Crown’s conduct to be “illegal, dishonest, unethical, and exploitative.” While the commission did not recommend stripping Crown of its licence, it did require the company to undergo significant reforms under the oversight of a special manager. The commission’s chair, Fran Thorn, stated that although Crown Melbourne has made significant improvements, the regulator will not hesitate to take action if similar mistakes occur in the future.

The Victorian royal commission, led by former Federal Court judge Ray Finkelstein QC, conducted an investigation into Crown’s operations. The commission concluded that Crown had allowed punters to gamble for up to 24 hours without a break, made false tax deductions, and violated anti-money laundering laws. Crown’s conduct was described as “illegal, dishonest, unethical, and exploitative.” However, the commission stopped short of recommending the cancellation of Crown’s licence, giving the company a two-year period to implement reforms.

After considering the findings of the royal commission and assessing Crown’s progress in implementing reforms, the Victorian Gambling and Casino Control Commission determined that Crown is suitable to continue holding the casino licence. The commission’s chair, Fran Thorn, emphasized that the systemic failings uncovered at Crown Melbourne are now a thing of the past. However, Thorn also acknowledged that there is no guarantee that Crown will not make future mistakes and assured that the regulator will take action if necessary.

Crown Resorts, the parent company of Crown Melbourne, has implemented extensive reforms to address gambling harm, financial crime, and money laundering. These reforms are aimed at rebuilding public trust in the company. While the commission cannot guarantee that Crown’s licence will be cancelled if similar mistakes occur in the future, Thorn emphasized that Crown is not “too big to fail.” The commission will take decisive action if Crown fails to comply with regulations.

One criticism of the regulatory process is the lack of criminal charges against individuals involved in the misconduct at Crown. The chair of the commission, Fran Thorn, addressed this concern by stating that the regulator is powerless to take action against individuals once they leave the organization. Despite the lack of consequences for specific individuals, Crown Resorts’ chair Helen Coonan and Melbourne site chief executive Xavier Walsh have both resigned.

In June 2022, US private equity giant Blackstone acquired Crown Resorts for $8.9 billion, ending James Packer’s control of the company. The commission’s chair, Fran Thorn, emphasized that the current management of Crown is not the same as the one that allowed the past misconduct to occur. Thorn stated that the special manager, Stephen O’Bryan QC, spent two years closely overseeing Crown’s operations and compiling extensive evidence.

The special manager appointed to oversee Crown’s operations will conclude their role in June. However, the commission assured that oversight will continue through its audit team. If Crown reverts to its previous behavior, including lying, obfuscating, and using legal power to bully the commission, the full extent of the law will be brought against them, according to Thorn. The commission is committed to preventing a recurrence of past breaches.

Crown is the largest single-site private employer in Victoria, with approximately 11,500 workers employed at its Melbourne location. The decision to allow Crown to retain its casino licence ensures the preservation of these jobs. However, concerns remain about the size of Crown Melbourne, which is more than double the size of any casino in Las Vegas. The Alliance for Gambling Reform has called for mandatory gambling harm reduction measures, currently in place at Crown, to be extended to all pubs and clubs in Victoria.