Melbourne’s Crown Casino has received a record $ 80 million fine for a scheme that allowed the illegal transfer of funds from China.
Key points:
- Crown Casino devised a scheme to allow Chinese citizens to transfer an illegal amount of money abroad
- The regulator said Crown “did everything possible” to keep the scheme a secret
- Crown said he acknowledged its “historic flaws” and pledged to reform
A Victorian royal commission in Crown found that foreign bettors could use a China Union Pay (CUP) bank card to access funds to play at the casino between 2012 and 2016.
The Victorian Gambling and Casino Control Commission (VGCCC) estimated that Crown earned more than $ 32 million in the scandal, which violated Chinese law and the Victoria Casino Control Act.
VGCCC President Fran Thorn said that while Crown had cooperated with the process, the fine would deprive the casino of the revenue it generated from illegal conduct.
“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. “, he said.
“Crown was aware of the risk that the CUP process could be illegal, but he decided to take that risk.
“In doing so, he showed no consideration for fulfilling his regulatory obligations. In fact, he did his best to hide what he was doing.”
Between 2012 and 2016, Chinese citizens were unable to transfer more than $ 50,000 abroad per year.
The royal commission found that Crown devised a scheme in which it would issue false receipts for hotel services.
The guest would then pay the bill with a China Union Pay bank card, give them a voucher, and exchange that voucher for playing cards.
Crown Casino said in a statement that it “acknowledges its historic mistakes.”
“When it became aware of this historic conduct, the Crown Board immediately commissioned an independent investigation and shared the findings with the Royal Victoria Commission, the Victorian Commission for the Regulation of Gaming and Alcohol (the predecessor of the VGCCC) and other regulators, “he said.
“Crown’s board and senior management are committed to providing a comprehensive reform and repair program to ensure that Crown provides a safe and responsible gaming environment and continues to cooperate with the VGCCC on all matters arising from the Royal Victoria Commission “.
Tim Costello, chief advocate of the Alliance for Gaming Reform, said the fine was “absolutely appropriate” and was thanks to the stronger legislative powers given to the regulator.
“At least I breathe a little easier now knowing we have a regulator that has severe sanctions,” he said.
The Royal Victorian Commission in Crown found the casino guilty of “shameful” conduct and recommended that its license be revoked if it could not prove that it had been refurbished in 2023.
The VGCCC said it is also considering new disciplinary proceedings against Crown related to the other findings of the royal commission.
More to come.
Posted 1 hour, 1 hour ago Monday, May 30, 2022 at 9:16 AM, updated 31 minutes ago, 31 minutes ago, Monday, May 30, 2022 at 9:53 AM