Operator News

Crown approved to retain its Melbourne licence

By Phil - 26 March 2024

Crown Melbourne has retained its Victorian Casino licence following a comprehensive transformation of its business that has seen the operator invest $200m since 2021 into its transformation, introducing extensive reforms across harm minimisation, financial crime, governance, compliance, risk, and culture, which has been accelerated under new ownership and management.

Guest wellbeing and harm minimisation has been at the forefront of the transformation, resulting in the implementation of world-leading initiatives at Crown Melbourne.

The Victorian Gaming and Casino Control Commission said it was ‘clearly satisfied that Crown Melbourne is suitable to operate the Melbourne Casino and that it is in the public interest that the Licence continue in force.’

The full Commission decided that Crown Melbourne has addressed the failings identified by the 2021 Royal Commission into the Casino Operator and Licence.

Commission Chair Fran Thorn said that the Royal Commission detailed how Crown Melbourne had breached its legal, social and moral obligations, resulting in illegal activities, tax avoidance, money laundering, criminal associations, and significant harm to vulnerable community members, ultimately finding Crown Melbourne unsuitable to hold the Melbourne Casino Licence.

“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,” she said.

The Victorian Government responded decisively to the Royal Commission’s findings, appointing a Special Manager to oversee Crown Melbourne’s operations and remediation. It also established the VGCCC as a new regulator focussed solely on the gambling industry and created a specific set of enhanced powers with respect to the Melbourne casino.

The Commission was given the responsibility of deciding whether it was clearly satisfied that Crown Melbourne had returned to suitability and whether the Melbourne Casino Licence remained in the public interest. In making its independent determination, the Commission carefully considered the reports of the Royal Commission and other relevant inquiries, the reports of the Special Manager. Those reports considered the steps Crown Melbourne had taken to address the matters identified by the Royal Commission and the measures to ensure they would not be repeated.

Commissioner Thorn said the Special Manager’s final report concluded that Crown Melbourne has remediated the failings exposed in the Royal Commission and established the critical foundations needed to achieve sustainable overall transformation in coming years.

“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 demonstrated to the satisfaction of both the Commission and the Special Manager that it had introduced extensive reforms to prevent or reduce gambling harm, financial crime and money laundering. It has also addressed systemic risk management failures and strengthened its integrity framework.

“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. The Commission’s decision was also supported by Crown Melbourne’s comprehensive transformation plan, required by the Special Manager, against which it will continue to be held accountable going forward.

“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 said.

Along with the VGCCC’s strengthened oversight regime and enforcement powers, the VGCCC has established a new, specialist Casino Division providing confidence that Crown Melbourne will be held stringently accountable in the future, including for its ongoing transformation.

“In return for the privilege of an exclusive licence, Victorians have a right to expect that Crown Melbourne will never again prioritise profit ahead of the safety and wellbeing of its patrons and staff or over compliance with its legal and social obligations.

“Crown Melbourne must continue to seek to rebuild and earn public trust by demonstrating the good character, honesty and integrity that are necessary to remain a suitable casino operator,” Commissioner Thorn said. “We put Crown on notice that this Commission will not hesitate to act if the privilege of holding the casino licence is again abused.”

The decision comes during Crown’s 30th anniversary year. Since first opening its doors on the north bank of the Yarra River and single-handedly changing the entertainment landscape in Australia, Crown Melbourne has grown to be the largest single-site employer in Victoria, and now stands as the safest place to gamble in the State.

Crown Melbourne acknowledges the requirement outlined by the VGCCC today as it relates to the casino licence and will continue to work constructively with the regulator to ensure ongoing compliance with broader industry regulations and standards.

Crown expects further updates regarding Crown Sydney’s licence status in the coming weeks, while Crown Perth continues its remediation activity and implementation.

Crown Melbourne CEO, Mike Volkert: “This outcome is one of the most significant milestones in Crown Melbourne’s 30-year history. It would not have been possible without the efforts of our team members, who have worked diligently over the past two years to implement meaningful change that has truly transformed our business.

“What we have achieved must be a continual focus for everyone at Crown Melbourne. We know the work doesn’t stop here, and we are committed to delivering the highest industry standards and putting the welfare of our guests at the forefront of decision-making, day in and day out.

“I would also like to acknowledge and recognise the Victorian Special Manager, Stephen O’Bryan KC and the Office of the Special Manager and the VGCCC led by Chair Fran Thorn and CEO Annette Kimmett AM for raising the standards of the entire industry.

“Crown Melbourne is now the safest venue in Victoria for gaming and entertainment, and we look forward to continuing to welcome our guests.”

Crown Resorts CEO, Ciaran Carruthers: “Since the acquisition of Crown Resorts by Blackstone in June 2022, and the appointment of new boards and a new executive leadership team, Crown Resorts has pioneered one of the most complex transformations ever undertaken in Australia. Over 10,000 pages of documentation have been submitted and 770 remediation activities have been delivered to our state regulators, fundamentally rebuilding our organisation from the inside out.

“Holding a casino licence is a privilege and an obligation we take extremely seriously. I am proud of what our team has accomplished, and the safe environment Crown Melbourne now operates in.

“Together we have built a stronger, better Crown and our unrelenting focus will remain on delivering the highest standards of integrity, harm minimisation and service excellence across our industry.”