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 Crown Resorts Finally was fined US$77mln by Victoria regulators




Crown Resorts Finally was fined US$77mln by Victoria regulators
Published: 2022-11-08

Background

The Royal Commission’s findings on Crown’s Responsible Service of Gambling obligations are set out in Chapter 8 of its final report.

Section 69 of the Casino Control Act 1991 makes it a condition of the casino licence for the casino operator to implement a Responsible Service of Gambling code of conduct that complies with certain regulations and Ministerial directions.

Section 23 of the Act is a provision which provides that the VGCCC may give to a casino operator a written direction that relates to the conduct, supervision or control of operations in the casino, and that the operator must comply with the direction as soon as it takes effect.

Australian casino operator Crown Resorts Ltd has been fined AUD120 million (US$77.2 million) in aggregate for serious misconduct, regulators in the Australian state of Victoria said on Monday.

The company runs casino complexes at its flagship Crown Melbourne (pictured) in Victoria; Crown Perth, in Western Australia; and Crown Sydney in New South Wales. Crown was acquired in June by private investment firm Blackstone Inc for US$6.15 billion.

The Victorian Gambling and Casino Control Commission said in its report that it had “taken disciplinary action against Crown Melbourne for failing its Responsible Service of Gambling obligations, imposing two fines totalling AUD120 million.”

The regulator said a AUD100 million fine was issued because Crown failed to prevent customers “from gambling for long periods of time.” The second fine of AUD20 million relates to Crown’s failure to prevent “patrons from using plastic picks and other devices to simulate ‘automatic play’ when gambling on certain electronic gaming machine.” The breaches by Crown were “extensive, sustained, systemic, and very serious”, the regulator said in the report published on its website.

The decision stems from findings during an eight-month royal commission into Crown’s suitability to hold a gaming licence in the state of Victoria. 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.

Fran Thorn, chairperson of the Victorian Gambling and Casino Control Commission, said in prepared remarks on Monday: “For a long time, Crown failed in its legal and moral obligation to ensure it provided its gambling products and services in a manner which minimised potential harm to its patrons, their families, friends and communities.”

He added: “These were not isolated breaches. They were part of a pattern of extensive, sustained and systemic failures by Crown that spanned roughly 12 years.”

Mr Thorn also said that the “record fines” imposed by the regulator on Crown “will send a powerful message” that the regulator “will not tolerate misconduct” that exposes the community to “increased risks of gambling related harm”.

In May, the Victorian regulator fined Crown AUD80 million over what it described as “illegal conduct” at Crown Melbourne relating to China UnionPay card transactions. The regulator said on Monday that it was “also considering further disciplinary proceedings against Crown related to the other findings of the Royal Commission.”

This is the second time the VGCCC has used its stronger enforcement powers to take disciplinary action against Crown for conduct uncovered by the Royal Commission. In May this year the VGCCC fined Crown $80 million over its China Union Pay process. This latest series of fines brings the total fines imposed on Crown by the VGCCC since receiving its strengthened enforcement powers to $200 million. The VGCCC is also considering further disciplinary proceedings against Crown related to the other findings of the Royal Commission.

 

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Salerno, ordinance issued: hourly limits for gaming and betting halls and for slots installed in general stores. 

Crown Resorts Finally was fined US$77mln by Victoria regulators

 

The Municipality of Salerno, through a union ordinance, has established that for public gaming halls and betting halls (including bowling and bingo halls) with gaming as their exclusive or main activity, and in which access to minors is prohibited, the following timetable must be observed: from 10am to 2am.

 

 

For businesses - equipped with slot machines - with exclusive or prevalent activities other than gaming (bars, tobacconists, etc.), and in which access to minors is not prohibited, the machines may remain switched on during the following hours: from 9 am to 12.30 pm, and from 14.30 pm to 23 pm.

 

 

 

The ordinance does not apply to businesses that have installed exclusively gaming machines without cash prizes and in any case to machines without cash prizes installed outdoors inside public establishments.

 

 



Government backs White Paper consultation phase against pending pressures. 

Crown Resorts Finally was fined US$77mln by Victoria regulators

 

The UK government has published its response to the Culture, Media and Sport Committee of the House of Commons observing sessions and consultations related to the Gambling Review. 

 

Chaired by Dame Caroline Dinenage (MP), in December, the Committee published its ‘second report of sessions 2023-to-2024’ related to implementing changes and proposals outlined by the Gambling Review’s White Paper.

 

The remit saw the Committee underline the 17 overarching policy proposals of the White Paper to include “new protections for online gambling consumers; the creation of a statutory gambling levy to raise money for problem gambling research, prevention and treatment; the relaxation of certain restrictions of land-based gambling premises, as well as new powers for local authorities which licence them; and the creation of a non-statutory gambling ombudsman to adjudicate disputes between gambling companies and the customers relating to social responsibility failings.” 

 

 

Further proposals include strengthening the Gambling Commission with new powers to tackle unlicensed online gambling, and a review of how the Commission’s fees are set and applied.

 

Observing the White Paper’s proceedings, the Committee detailed recommendations that “the government must set out a detailed timetable for the delivery of the White Paper’s proposals, including when relevant primary legislation will be introduced to Parliament.” 

 

However, the government expressed its commitment to proceeding with the consultations on the White Paper swiftly and has highlighted the ongoing work to implement the proposed measures.  

 

Work to date includes the three public consultations on key proposals from the White Paper related to new land-based gambling measures ,the design of the Statutory Levy for safer gambling, and new stake limits for online slots. 

 



Gibraltar meets with the International Olympic Committee and UEFA in Switzerland to discuss match-fixing. 

Crown Resorts Finally was fined US$77mln by Victoria regulators

 

 

 

 

A representative of the Gibraltar Gaming Division specializing in sporting integrity issues has attended a high-level workshop jointly organized by the International Olympic Committee and UEFA at the Olympic House in Lausanne, Switzerland. It was a seminar to optimize prevention regarding fraudulent sports betting and match-fixing.

 

 

The Gibraltar Football Association (GFA) hosted a UEFA seminar on match-fixing at the Rock, which was also attended by representatives from the Gaming Division. Andrew Lyman, Gibraltar's Gambling Commissioner, highlighted: “Work on integrity in sport and engaging with parties interested in match-fixing is an important part of our work that often goes unnoticed.”

 

 

In the 22/23 season, the Gibraltar Gaming Division received 42 betting integrity reports from betting operators and 13 requests for assistance from the Olympic Movement Unit on Prevention of Manipulation of Sports Competitions. In addition, according to the Gibraltarian authorities, he participated in many communications to national and international sports governing bodies (including FIFA and UEFA), as well as in engagement with law enforcement.

 



Facua asks to modify the Gaming Law to limit the acquisition of clients. 

Crown Resorts Finally was fined US$77mln by Victoria regulators

 

Facua [The consumer association FACUA-Consumers in Action] has requested the Government to promote a modification of the Gaming Law and other laws that affect the matter in order, according to the association, to correct the inconsistencies that exist between them and that have led to the Supreme Court to annul several articles of the regulations implemented in 2020 to limit advertising of betting houses and their products.

 

 

The Supreme Court indicates that it is necessary to annul a series of articles, since there is no prior legal authorization that allows this rule to regulate certain issues, including limitations on attracting clients or the prohibition of advertising by famous people.

 

The association considers that, even though betting houses are dedicated to a legal activity, they are especially harmful to vulnerable groups such as minors or people with few resources, as well as users who already have gambling problems and that through the internet, they have direct and easy access to these betting platforms.

 

 

This Supreme Court ruling opens the door to a flood of betting house advertisements on social networks, media, or websites, also using famous people as a lure.

 

 

Facua points out in its statement that, although gambling is a legal activity that people of legal age can voluntarily access, this does not prevent the danger that it can pose for certain especially vulnerable groups from justifying the State from limiting its advertising to all the citizens.

 



Still the discrimination persists on financing for gambling companies in Europe. 

Crown Resorts Finally was fined US$77mln by Victoria regulators

The Independent Association of Recreational Machine Operating Companies of Catalonia, Europer, has published the results of its third barometer on the situation of the recreational sector. The objective of this analysis is to provide a greater understanding of the business reality in the recreational field for the economic world, the Administration and society in general.

 

7 out of 10 recreational companies have been harmed when requesting financing for their business because they are linked to the gaming sector.

 

This survey, carried out in March 2024, included the participation of 406 Catalan companies, 93% of which are SMEs. According to the results, 72.7% of companies in the recreational sector have experienced difficulties when applying for financing due to their association with gambling.

 

 

Albert Sola, president of Europer, expressed his concern about this data and noted: "We hope that these prejudices towards companies in our sector will soon disappear, since we strictly comply with the law and, therefore, we should have the same rights as any another industry”.

 

Regarding the evolution of business during the first quarter of the year, 54.5% of companies reported positive progress, while 36.4% remained stable and only 9.1% experienced a decline. These results represent an improvement over the previous quarter, where only 37.5% reported positive progress.

 

 

Regarding workforce growth expectations for the second half of 2024, 81.8% of companies plan to keep their staff stable, 9.1% anticipate growth and another 9.1% anticipate a decrease. These figures are similar to those of the previous quarter, suggesting a stable trend in the sector.

 

Albert Sola concluded: "These are encouraging data for companies in the gaming sector, and we hope that this positive trend will continue throughout 2024."

 


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