Crown Resorts Hit With $1 Million Fine for Ignoring Junket Warnings

Crown Resorts’ Melbourne establishment has received a substantial $1 million penalty for disregarding its own regulations concerning high-roller tours. The gambling venue persisted in its dealings with a junket organizer deemed “inappropriate” by the Victorian Gambling and Casino Control Commission (VGCCC).

Despite multiple cautions, Crown Melbourne neglected to sever connections with “Individual A” and his colleague “Individual B.” Individual A, possessing a background of gambling-related legal issues in the United States, was identified as problematic by the Commission in 2014. Unfazed, Crown opted to collaborate with Individual B, Individual A’s personal aide, who opportunely initiated her own junket venture.

This partnership intensified, and by 2016, Crown had extended a significant $20 million credit facility to Individual B. Adding insult to injury, this line of credit was secured by “Individual C,” a business partner of Individual A who was also embroiled in legal difficulties within the United States at the time.

The VGCCC criticized Crown’s overt disregard for its advisories and its inadequate scrutiny of Individual B. Furthermore, Crown concealed its entire association with Individual B, failing to apprise the regulatory body. This absence of openness ultimately resulted in the imposition of the most severe penalty.

The substantial financial penalty levied against Crown Resorts highlights the seriousness of their conduct, especially their inability to swiftly sever connections with the prohibited high-roller tour organizer as directed by the regulatory body,” declared Ross Kennedy, head of the Victorian Gambling and Casino Control Commission (VGCCC). He stressed, “The VGCCC anticipates complete adherence from its licensed entities and will persist in taking resolute measures against those who disregard or breach regulatory mandates.” This sanction comes after a prior AU$1 million fine imposed on Crown Melbourne in April for comparable wrongdoing, leading the Victorian Government to enact the Casino and Gambling Legislation Amendment Act 2021. This updated legislation considerably raised the highest possible penalty and prohibited collaborations with high-roller tour organizers.