Melbourne’s Crown Casino has been fined a record AU$80 million (€53.4 million) fine for running a scheme that allowed gamblers and customers to make illegal transfers of funds from China.
Crown would issue fake hotel receipts and reimburse gamblers with vouchers that could be used at the casino
A Victorian royal commission discovered that Crown had devised a scheme that allows gamblers based in China to use a China Union Pay (CUP) bank card to access funds when gambling at the casino between 2012 and 2016. This was used primarily as a method to avoid transfer limits.
Crown Casino Melbourne Fined AU$80 Million For China Union Pay SchemeThe VGCCC estimated that Crown generated as much as AU$32 million (€21.35 million) from the illegal scheme which breached the casino’s licensing conditions along with Victoria’s Casino Control Act and Chinese laws relating to the transfer of funds.
Crown Casino Melbourne Fined AU$80 Million For China Union Pay SchemeSpeaking of the fine, VGCCC chairperson Fran Thorn said:
“Crown’s CUP process was a clandestine, deliberate process, which not only breached the Casino Control Act but was also devised to assist patrons to breach China’s foreign currency exchange restrictions. Crown was aware of the risk that the CUP process could be illegal but decided to run that risk.
In doing so, it showed no regard for upholding its regulatory obligations. Indeed, it went to some lengths to hide what it was doing.”
In a statement following the announcement of the fine, Crown Casino said:
Crown Casino Melbourne Fined AU$80 Million For China Union Pay SchemeCrown’s board and senior management are committed to the delivery of a comprehensive reform and remediation program to ensure Crown delivers a safe and responsible gaming environment and continues to cooperate with the VGCCC on all matters arising from the Victorian Royal Commission Report.”
The fine is the largest issued in the VGCCC’s history. Until last year, the maximum fine that could be imposed by the VGCCC was AU$1 million. However, this threshold was raised to AU$100 million.
Tim Costello, chief advocate for the Alliance for Gambling Reform, told ABC Radio Melbourne that the fine was “absolutely appropriate”.
Crown Casino Melbourne Fined AU$80 Million For China Union Pay Scheme Crown Casino Melbourne Fined AU$80 Million For China Union Pay Scheme“I’m at least breathing a little bit easier now knowing we’ve got a regulator that has serious sanctions.”
