PGasia | In a landmark regulatory action, Crown Melbourne has been penalized with a fine amounting to AU$2 million (approximately US$1.34 million) for breaching self-exclusion protocols. The fine comes after it was revealed that at least 242 individuals who had voluntarily self-excluded from gambling were still able to enter the casino’s gaming floor and participate in activities such as slot machines and table games.
The Victorian Gambling and Casino Control Commission (VGCCC), which oversees gambling regulations in Victoria, disclosed the violations on Tuesday. According to the VGCCC, these incidents occurred between October 2023 and May 2024, highlighting a significant gap in the casino’s enforcement of its self-exclusion policies.
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PGasia | Regulatory Body Expresses Concern Over Crown’s Failure to Protect Self-Excluded Patrons
VGCCC Chair, Fran Thorn, voiced her concerns regarding Crown Melbourne’s failure to uphold self-exclusion protocols, emphasizing that these programs are essential to preventing gambling harm. “Self-exclusion is a vital harm prevention tool, and individuals who choose this path must be able to trust that casinos will uphold their decision,” Thorn stated. “By allowing these individuals to return to the gaming floor, Crown Melbourne has exposed them to further risk, undermining the very purpose of self-exclusion.”
Thorn went on to acknowledge that while some self-excluded patrons may have made deliberate attempts to bypass security, it is the responsibility of the casino to enforce their exclusion. The breaches highlighted significant shortcomings in the casino’s systems for managing and monitoring excluded individuals, raising concerns about its broader compliance with responsible gambling initiatives.
A Series of Failures in Compliance
Crown Resorts, the parent company of Crown Melbourne, has faced mounting regulatory scrutiny over the past few years. Investigations by multiple state authorities—including those in Victoria, New South Wales, and Western Australia—have uncovered widespread compliance failures, with particular concerns related to anti-money laundering practices and associations with organized crime groups.
Although Crown has retained its licenses in all states, the financial and reputational costs of these investigations have been considerable. The company, which is now largely controlled by Blackstone Group, has paid AU$450 million in fines and committed AU$130 million toward strengthening its compliance mechanisms, including efforts to combat money laundering and tighten security.
In light of the AU$2 million penalty for self-exclusion breaches, Fran Thorn also noted that Crown Melbourne has recently implemented new security measures aimed at enhancing the enforcement of exclusion orders. The casino has been directed to commission an independent review by a third-party security firm, tasked with assessing the effectiveness of its self-exclusion systems and recommending further improvements.
The fine, issued under the Australia Casino Control Act of 1991, marks another step in Crown Melbourne’s ongoing efforts to rebuild its reputation and address concerns raised by regulatory bodies.
Australia’s Struggles with Problem Gambling Continue
Australia is known for its high rates of gambling participation, with an estimated 75% of adults engaging in some form of gambling each year. Of particular concern is the prevalence of problem gambling, with nearly 40% of Australians gambling on a weekly basis, a trend that has raised alarms among regulators and public health advocates alike.
A government study published in 2022 found that over 70% of men and 56% of women aged between 18 and 34 are considered “at risk” of developing gambling-related issues. This troubling data has prompted authorities to take action, launching various harm prevention initiatives, including the introduction of a national self-exclusion register.
The Launch of BetStop: A National Self-Exclusion Initiative
In response to growing concerns over gambling addiction, the Australian Government rolled out BetStop, the country’s first national self-exclusion register, in August 2023. Since its inception, more than 28,000 people have signed up for BetStop, with around 35% opting for lifetime self-exclusion.
BetStop allows users to self-exclude from online casino platforms and other gambling venues for varying durations, ranging from a minimum of three months to a permanent lifetime ban. The program is designed to provide a central, easily accessible option for those seeking to take control of their gambling behavior.
Individuals who wish to cancel their exclusion can apply through the Australian Communications and Media Authority (ACMA), which oversees the registry. However, they must demonstrate that they have taken steps to address their gambling issues and can only apply for revocation after a minimum of three months on the exclusion list.
The Broader Impact of Crown Melbourne’s Penalties on the Casino Industry
The hefty fine imposed on Crown Melbourne is yet another reminder to the global casino industry of the importance of responsible gaming policies. With increasing regulatory scrutiny on gambling venues, particularly with the rise of online casino platforms like PGasia and others, the need for strong compliance and harm prevention measures has never been more critical.
Casinos, both physical and online, must ensure that systems are in place to identify and block self-excluded individuals from accessing gaming services. This is not only a regulatory obligation but also a moral responsibility to protect vulnerable individuals from the harms associated with gambling addiction.
As the online casino industry continues to grow, driven in part by platforms like PGasia, it is essential for operators to keep pace with evolving regulations and ensure that their customers have access to effective harm prevention tools.
FAQs About Crown Melbourne’s AU$2 Million Fine
1. Why was Crown Melbourne fined AU$2 million?
Crown Melbourne was fined because it allowed over 240 self-excluded individuals to access its gambling services, violating harm prevention measures intended to protect vulnerable patrons.
2. What is the role of the VGCCC in this case?
The VGCCC, or Victorian Gambling and Casino Control Commission, is the regulatory body that oversees gambling activities in Victoria. It imposed the AU$2 million fine after identifying significant breaches of self-exclusion policies by Crown Melbourne.
3. How does Crown Melbourne plan to improve its self-exclusion enforcement?
Crown Melbourne has implemented new security measures to better enforce self-exclusion and is required to engage a third-party security firm to assess and improve its self-exclusion management systems.
4. What is the significance of the Casino Control Act of 1991 in this case?
The Casino Control Act of 1991 is the legislation under which the AU$2 million fine was imposed. It governs the operations of casinos in Australia and includes provisions for penalties related to breaches of regulatory obligations.
5. What is BetStop and how does it work?
BetStop is Australia’s first national self-exclusion registry, allowing individuals to exclude themselves from gambling for periods ranging from three months to a lifetime. The system is part of the country’s effort to reduce gambling harm.
6. How has Crown Melbourne addressed previous regulatory failings?
Crown Resorts, the parent company of Crown Melbourne, has invested millions to improve its compliance systems following state inquiries that found significant failings in anti-money laundering practices and other areas of concern.
Crown Melbourne self-exclusion policy failure
Crown Melbourne faced significant penalties due to its self-exclusion policy failure, which allowed previously excluded individuals to re-enter and gamble on its premises.
Victorian Gambling and Casino Control Commission fines
The Victorian Gambling and Casino Control Commission (VGCCC) is responsible for overseeing casino operations in the state, and it issued a substantial fine to Crown Melbourne for violations of self-exclusion rules.
AU$2 million fine for casino violations
Crown Melbourne received an AU$2 million fine for casino violations, specifically for allowing over 240 self-excluded patrons to access the gaming floor, violating critical harm prevention regulations.
