Crown Resorts Fined $19.9M for Allowing Gambling with Uncleared Cheques

Crown Resorts, one of Australia’s largest casino operators, has been fined AUD30 million ($19.9 million) by the Victorian Gambling and Casino Control Commission (VGCCC) for allowing patrons to gamble with uncleared bank cheques over the course of more than two decades. The VGCCC investigation found that Crown allowed thousands of punters to sign over uncleared cheques worth at least AUD1.5 billion ($993.9 million) by giving them casino chips, effectively providing a line of credit that should not have been accessible.

Crown Resorts Fined Millions for Breaching Gambling Regulations and Accepting Illegal Funds

The practice was initially exposed by The Age newspaper in 2014. VGCCC chair Fran Thorn emphasized that the commission will continue to investigate to ensure that Crown does not conceal any further undisclosed practices.

Crown Resorts was fined AUD80 million ($53 million) last year for accepting illegal funds between 2012 and 2016 and another AUD120 million ($79.5 million) in November for breaching its responsible gambling obligations. The company accepted the most recent fine, stating that the practices had stopped and that it had implemented measures to minimize risks and prevent similar issues from occurring again.

The VGCCC estimated that Crown made between AUD30 million ($19.9 million) and AUD 75 million ($49.7 million) in extra profits from the uncleared cheques. Crown received or exchanged for chips approximately 2,900 bank cheques worth around AUD500 million ($331 million) between September 2013 and May 2021, before these cheques were cleared.

The casino operator was unable to provide exact revenue numbers. However, it was estimated that an average of AUD62.5 million ($41.4 million) a year was accepted, totaling over AUD1.5 billion ($993.9 million) between 1994 and 2021, when the practice ceased. 

Crown Resorts’ Illicit Gambling Practices Continue to Haunt The Company

The VGCCC also looked into the Royal Commission’s conclusion that Crown had accepted blank cheques in exchange for gambling chips, but there was insufficient evidence to establish that claim. As reported by Australian media The Age, Monash University Associate Professor Charles Livingstone believed that this discovery is emblematic of how Crown operated in Melbourne over many years, suggesting that the casino’s crimes and misdemeanors would haunt it for some time, even under new ownership.

This news follows Crown Resorts’ recent sale of its stake in Melco Resorts & Entertainment and the company’s planned sale of its Melbourne and Perth casino properties. 

The Australian gambling industry has faced increasing scrutiny in recent years, leading to calls for tighter regulations and reforms.