Crown Resorts Fined $30 Million for ‘Blank Check’ Policy Breach

Avatar photo By admin Jun28,2024

The Victorian Gaming and Casino Oversight Agency (VGCCC) has levied a substantial $30 million Australian dollar (GBP 15.8 million/USD 19.8 million/EUR 18 million) penalty on Crown Resorts, a brick-and-mortar gambling establishment operator, for its Melbourne casino’s infringement of the “blank check” policy.

The commission’s most recent sanction against the contentious casino operator originates from Crown permitting patrons to wager with uncashed checks, rather than through the casino itself.

This practice contravened the Victorian Casino Control Act of 1991, which forbids the utilization of checks in casinos, with a few specific exceptions. The policy is intended to prevent casinos from extending credit to gamblers and acts as an anti-money laundering measure.

The hefty fine reflects the long-standing nature of the unrecorded practice within the casino, undermining crucial control measures. Based on the findings, the VGCCC indicated it will further probe Crown’s unrecorded procedures.

“This marks the second time we have taken action against the casino’s unrecorded practices, and we will be conducting additional investigations to ensure this does not recur,” stated Chair Fran Thorn. “It must be clear that we will not permit casinos to conceal their practices to avoid scrutiny.”

The regal gambling establishment, Crown Casino, was discovered to be participating in activities that placed them at risk of financial misconduct and exposed patrons to the perils of excessive gambling. The Victorian regulatory body overseeing gambling and liquor, expressed concern over these practices, which included the acceptance of checks without a pre-determined amount.

The Commission determined that Crown was filling in the monetary value owed by individuals after they had concluded their gambling endeavors. This procedure was deemed a serious violation of the governing legislation, however, there was insufficient proof to confirm the casino’s involvement in this activity.

Consequently, Crown was instructed to cease the practice of accepting checks without a pre-determined amount at its Melbourne establishment and to thoroughly examine its existing policies and procedures for accepting such checks. This marks the third occasion that Crown has been subjected to financial penalties.

The Victorian Gambling and Casino Control Commission has penalized Crown Resorts for the third time, stemming from findings of a Royal Commission inquiry.

The Victorian Gambling and Casino Control Commission levied a $80 million fine on Crown Resorts in May 2022 for breaches related to China UnionPay payment procedures. In November, the regulatory body imposed another $120 million penalty on Crown Resorts for shortcomings in its responsible gambling commitments.

A representative from Crown Resorts stated: “Crown Melbourne acknowledges the Victorian Gambling and Casino Control Commission’s ruling.”

“These practices have been discontinued, and we have implemented substantial enhancements to mitigate and prevent risks across our operations.

“Under new ownership and leadership, our ‘Future Crown’ initiative is driving reform throughout the company, and we are continuously elevating our culture and building a Crown that surpasses the expectations of our stakeholders and communities.

“We will adhere to the directives issued and will collaborate constructively with the Victorian Gambling and Casino Control Commission and the government to address this matter and other concerns raised by the Victorian Royal Commission.”

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By admin

This talented writer and mathematician holds a Ph.D. in Applied Mathematics and a Masters in Probability Theory. With a deep understanding of the intricacies of casino games, they have published numerous articles on game theory, probability, and combinatorics in relation to gambling. Their expertise in discrete mathematics and stochastic processes has made them a sought-after consultant for licensed casinos worldwide. Their articles, reviews, and news pieces provide valuable insights into the world of casino gaming.

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