Crown Melbourne has received a hefty $ 80 million fine, possibly more on the way, following the Royal Victorian Commission.
Crown Melbourne has been fined $ 80 million for its China Union payment process, which allows customers to use their credit cards to access play money.
The Victoria Gaming and Casino Control Commission on Monday announced disciplinary action for illegal conduct.
Crown Melbourne allowed customers to use a debit or credit card to access funds to play at the casino between 2012 and 2016.
The move facilitated access to nearly $ 164 million, of which Crown earned an estimated $ 32 million in revenue.
The Royal Commission on Casino Operators and Licensing found the China Union payment process to be illegal and in violation of the 1991 Casino Control Act.
Crown Melbourne admitted that the CUP process was illegal and “completely unacceptable”.
VGCCC President Fran Thorn said that while Crown deserved some credit for its cooperative approach to disciplinary proceedings, the record $ 80 million fine was “appropriate and necessary.”
“The Crown CUP process was a clandestine and deliberate process, which not only violated the Casino Control Act, but was also designed to help customers breach China’s currency exchange restrictions.” , said Ms Thorn.
“Crown was aware of the risk that the CUP process could be illegal, but he decided to take that risk. In doing so, it showed no consideration for compliance with its regulatory obligations. In fact, he made a great effort to hide what he was doing.
“Crown has benefited greatly from his illegal conduct. The fine will ensure that Crown is deprived of the proceeds from the CUP process and will send a clear message that it must comply with its regulatory obligations.”
This is the first time the VGCCC has used its strongest enforcement powers under legislative changes to the Casino Control Act, with the maximum allowed fine now of $ 100 million, more than $ 1 million.
Crown Melbourne has also been ordered to pay the VGCCC’s costs of disciplinary action, which have not yet been reported.
The VGCCC is also considering new disciplinary proceedings against Crown in connection with the other findings of the Royal Commission, which could result in a fine of up to $ 100 million.
In a statement, Crown said it “acknowledges its historic mistakes.”
“China’s UnionPay process ceased in 2016. Upon learning of this historic conduct, the Crown Board immediately commissioned an independent investigation and shared the findings with the Victorian Royal Commission, the Victorian Commission for Gambling and Liquor Regulation. the VGCCC) and other regulators, “the company said in a statement.
The Crown Board and senior management committed to comprehensive reform to ensure Crown provided a safe and responsible gaming environment, the statement continued, and the company said it continued to cooperate with the VGCCC on all issues. derived from the report of the Royal Victorian Commission.
Read related topics: China Melbourne