Crown Melbourne Penalized $2 Million for Violating Self-Exclusion Rules

Crown Melbourne Penalized $2 Million for Violating Self-Exclusion Rules

The Victorian Gambling and Casino Control Commission (VGCCC) has imposed a $2 million fine on Crown Melbourne for allowing 242 self-excluding individuals to gamble at its casino between October 2023 and May 2024.

VGCCC Chair Fran Thorn said:

“It is a violation of the Casino Control Act 1991 (Vic) to permit an excluded person, including those who self-exclude, to enter, remain, or gamble in the casino. This also breaches Crown Melbourne’s duty to protect individuals at risk of gambling harm.

Those who self-exclude should have confidence that gambling providers will take every reasonable measure to honor their decision as part of this harm-prevention initiative. By failing to prevent these individuals from entering and gambling, Crown exposed them to further harm. However, it’s clear that some of these patrons went to considerable lengths to bypass detection and violate their self-exclusion agreements.”

The VGCCC announcement revealed that the breaches were identified through continuous oversight of the casino’s operations. The Commission attributed these violations to system and control shortcomings, rather than intentional disregard for regulatory obligations on Crown’s part.

Thorn added:

“The Commission has directed Crown to engage an independent expert to assess and recommend improvements for its self-exclusion management program. Crown will be required to implement these expert recommendations in the near future.”

In April 2024, the VGCCC ordered Crown Melbourne to enact a transformation plan following the Finkelstein Royal Commission’s findings, aimed at ongoing reform and remediation.

The Commission noted that Crown has made some progress in bolstering its controls, enhancing monitoring, security, technology, and staff training regarding exclusion orders.

Thorn concluded:

“The VGCCC remains committed to ensuring Crown continues its reform journey.”

Crown Troubles Continue

Crown reported a loss of AU$199 million ($126.4 million/€119.7 million) during the 2023 financial year. The company cited regulatory penalties and the cost of living crisis as it recorded a loss for the third year in a row.

The company’s revenues were hit by a AU$450 million (€275.3 million) settlement with The Australian Transaction Reports and Analysis Centre (AUSTRAC). The deal followed serious AML failings at Crown’s Melbourne and Perth properties.

In April of 2024, it was announced that Crown would reduce its workforce by 1,000 following a significant drop in tourist revenues and tighter restrictions on gaming at its properties.

The news came after the New South Wales Independent Casino Commission (NICC) found that Crown Sydney could retain its casino license while the Victorian Gambling and Casino Control Commission (VGCCC) came to the same decision for the Melbourne property.

However, Chief executive Ciaran Carruthers told staff that the company would be restructuring its operations in Sydney, Melbourne, and Perth resulting in a staff reduction of 4% or approximately 1,000 jobs.

Olivia Richardson

Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.

Crown Melbourne, one of Australia’s largest and most well-known casinos, has been hit with a hefty $2 million fine for breaching self-exclusion rules. The Victorian Commission for Gambling and Liquor Regulation (VCGLR) found that the casino had allowed a number of self-excluded gamblers to continue playing on its premises, in violation of the state’s strict regulations.

Self-exclusion is a voluntary program that allows individuals to ban themselves from gambling venues in order to help curb problem gambling behavior. Once someone has self-excluded, it is the responsibility of the casino to ensure that they are not able to access their services. This can include denying them entry to the premises, blocking them from using gaming machines, and refusing to take bets from them.

In the case of Crown Melbourne, the VCGLR found that the casino had failed to properly enforce these self-exclusion rules, allowing a number of self-excluded individuals to continue gambling on its premises. This is a serious breach of trust and a violation of the regulations put in place to protect vulnerable individuals from the harms of problem gambling.

The $2 million fine is a significant penalty for Crown Melbourne, but it also serves as a warning to other gambling operators that the VCGLR takes self-exclusion rules very seriously. It is essential that casinos and other gambling venues adhere to these regulations in order to protect their customers and uphold the integrity of the industry.

In response to the fine, Crown Melbourne has issued a public apology and committed to improving its processes for enforcing self-exclusion rules. The casino has also stated that it will be implementing additional training for staff members to ensure that they are better equipped to identify and prevent self-excluded individuals from accessing their services.

Overall, this incident serves as a reminder of the importance of responsible gambling practices and the need for strict enforcement of self-exclusion rules. It is crucial that all gambling operators take their responsibilities seriously and work diligently to protect vulnerable individuals from the harms of problem gambling.