Crown Melbourne Faces AU$2 Million Fine Over Self-Exclusion Failures

Crown Melbourne has been fined $2 million by the Victorian Gambling and Casino Control Commission (VGCCC) for permitting 242 self-excluded individuals to gamble at the casino between October 2023 and May 2024. The VGCCC's inquiry found that system failures were at the root of the violations, pointing to weaknesses in the casino’s self-exclusion management program, a critical initiative aimed at preventing harm.

Self-Exclusion Breaches Raise Concerns

The self-exclusion program, a key component of responsible gambling measures in Australia, allows individuals to voluntarily exclude themselves from gambling venues, including Australian online casinos and land-based operations. However, Crown Melbourne's inability to enforce these self-exclusion agreements resulted in the vulnerable individuals being allowed to gamble, which is a direct violation of the state's Casino Control Act 1991.

According to the VGCCC, the casino's failure to prevent these self-excluded individuals from entering and gambling on multiple occasions during the eight-month period reflected systemic shortcomings rather than deliberate non-compliance. VGCCC Chair Fran Thorn stressed that self-exclusion programmes are meant to safeguard individuals vulnerable to gambling harm, and Crown's failures put these individuals at greater risk.

Ordered Reforms and Regulatory Oversight

As part of the regulatory action, the VGCCC has instructed Crown Melbourne to appoint an independent expert to evaluate its self-exclusion system and suggest improvements. These recommendations are expected to address the gaps in the Crown's surveillance, monitoring, and internal control systems that allowed these breaches to occur.

While Crown has taken some steps to improve its monitoring and security protocols, the VGCCC stated that these efforts have not fully mitigated the risks. The Commission expects Crown to implement the recommended changes as soon as possible, ensuring better adherence to regulatory standards.

Financial Struggles and Workforce Reductions

This AU$2 million fine adds to Crown Melbourne’s ongoing challenges. In 2023, the casino operator reported a loss of AU$199 million, its third consecutive year of financial difficulties. The casino’s revenue has been hit hard by regulatory penalties and a settlement with the Australian Transaction Reports and Analysis Centre (AUSTRAC), which led to a AU$450 million payout over anti-money laundering (AML) breaches at Crown's Melbourne and Perth properties.

To address its financial woes, Crown announced in April 2024 that it would be reducing its workforce by 1,000 employees, representing about 4% of its staff. This decision was driven by declining tourist revenues and increased operational costs due to tighter regulations and enforcement measures. These layoffs are part of a broader restructuring effort aimed at stabilizing Crown’s operations in Melbourne, Sydney, and Perth.

Despite these setbacks, Crown has managed to retain its casino licenses in both Sydney and Melbourne. Both the New South Wales Independent Casino Commission (NICC) and the VGCCC have allowed Crown to continue operating under stringent regulatory supervision, with Crown Melbourne working toward implementing reforms to improve compliance with legal and ethical standards.

Ongoing Issues with Self-Exclusion Enforcement

The VGCCC's investigation into the self-exclusion breaches revealed that Crown Melbourne’s failure to uphold the self-exclusion agreements was not an isolated incident. Over the eight-month period, some of the self-excluded individuals were able to gamble undetected for hours, underscoring significant weaknesses in the casino’s monitoring systems.

These failures highlight the importance of robust self-exclusion enforcement in maintaining a safe gambling environment. The VGCCC imposed the AU$2 million fine as part of its efforts to ensure that Crown Melbourne rectifies its self-exclusion program and avoids similar breaches in the future.

Industry-Wide Impact and Further Reforms

Crown Melbourne’s AU$2 million fine is part of a broader regulatory crackdown on the Australian gambling industry. In recent years, Crown has faced numerous sanctions, including a record AU$120 million fine in November 2022 for failing to meet responsible gambling obligations and for breaches related to AML practices. These actions follow the Finkelstein Royal Commission’s scathing report in 2021, which found that Crown’s practices were “illegal, dishonest, unethical, and exploitative.”

While Crown has made efforts to address these issues, including implementing new policies and procedures, the VGCCC has emphasized that ongoing reforms are necessary. The VGCCC and other regulatory bodies will continue to monitor Crown’s compliance with responsible gambling measures, particularly its self-exclusion program.

The VGCCC has also indicated that it is prepared to impose further penalties if Crown fails to implement the necessary changes. The Commission’s primary concern is ensuring that Crown Melbourne and other casinos in Australia prioritize the protection of vulnerable individuals from gambling-related harm.

The Future of Crown Melbourne

As Crown Melbourne continues its efforts to recover from both regulatory and financial challenges, the casino faces increased pressure to rebuild its reputation and restore public trust. The recent AU$2 million fine for self-exclusion breaches serves as a reminder of the importance of maintaining strong internal controls and compliance with gambling regulations.

Moving forward, Crown's ability to navigate these challenges will be critical to its success. The casino must not only comply with legal requirements but also address the concerns of regulators, customers, and the broader public. As the Australian gambling industry evolves, Crown’s future will depend on its capacity to reform its operations and deliver on its commitments to responsible gambling practices.