Casino operator Crown Resorts Ltd will keep its licence to run the Crown Melbourne property (pictured) in the Australian state of Victoria, following a lengthy probation period and reviews from the authorities there.
The Victorian Gambling and Casino Control Commission said in a Monday statement that it was “clearly satisfied that Crown Melbourne is suitable to operate the Melbourne casino,” and that it was “in the public interest that the licence continue in force”.
Crown had been fined AUD120 million (US$78.5 million currently) in aggregate for serious misconduct, as per an announcement from Victorian regulators in November 2022.
The disciplinary action stemmed from findings during an eight-month royal commission into Crown’s suitability to hold a gaming licence in that state. In October, the casino firm was found unsuitable to operate a casino at its resort in Melbourne, but it was able to retain its licence under stricter oversight.
On Monday, the gaming regulator said it had “decided that Crown Melbourne has addressed the failings” identified by the royal commission.
The announcement quoted Fran Thorn, chairperson of the Victorian Gambling and Casino Control Commission, as saying: “Despite the enormity of its findings, the Finkelstein Royal Commission recommended Crown be permitted to continue operating under stringent independent oversight conditions for two years, determining it had the will and capacity to transform itself to again become suitable, which would be to Victoria’s benefit.”
The Victorian government had appointed a special manager to oversee Crown Melbourne’s operations and remediation during the probation period. It also overhauled the gaming regulator and “created a specific set of enhanced powers with respect to the Melbourne casino,” according to Monday’s update.
Commissioner Thorn said the special manager’s final report “concluded that Crown Melbourne has remediated the failings exposed in the royal commission”.
“There was no evidence of maladministration or illegal or improper conduct indicative of the serious and systemic failures previously identified by the royal commission, and these failings had been addressed,” she said.
Commissioner Thorn said that Crown Melbourne had introduced “extensive reforms to prevent or reduce gambling harm, financial crime and money laundering”.
“During our investigations, we observed a different Crown Melbourne emerging with a clear understanding of the privilege and obligations of holding the Melbourne casino licence,” she said.
Ms Thorn added that the decision was also supported by Crown Melbourne’s “comprehensive transformation plan,” as required by the special manager.
“That transformation plan will be at the heart of our oversight, along with Crown’s legal and social obligations, and provides the next level standard for Crown Melbourne. The Commission will require Crown Melbourne to deliver further transformation through a statutory direction that will be issued shortly,” she stated.
Crown, controlled by private investment firm Blackstone Inc, also runs the Crown Perth venue, in Western Australia; and Crown Sydney in New South Wales.
The casino operator also faced lengthy probity inquiries in the two other states where it operates, following allegations that its facilities may have been used for money laundering due to insufficient management oversight. It was eventually allowed open its casino in Sydney and to continue its gaming operations in Perth, but with warnings it would be kept under stricter scrutiny in future.
In September 2022, Ciarán Carruthers, took over as the new chief executive of Crown Resorts.
