In a decision resonating throughout the state of Victoria, the VGCCC has concluded that it serves the “public interest” for Crown Melbourne to maintain its casino licence. As Victoria’s largest individual employer at a single site, the stability of Crown Melbourne’s operations is a key economic factor.
The decision arrives in the aftermath of significant alterations mandated by a Royal Commission investigation into casino licencing, which sharply condemned the casino for engaging in “illegal, dishonest, unethical and exploitative” conduct. The incisive report from October 2021 labeled Crown Melbourne as “unsuitable” for holding a casino licence. It suggested, however, that the licence should not be stripped away immediately to prevent potential economic repercussions.
In response to the Commission’s scathing remarks, it crafted a set of guidelines aimed at rectifying the casino’s practices. Over the next two years, Crown Melbourne undertook a robust overhaul of their operations to adhere to these recommendations. Notable among these measures was the introduction of new protocols dedicated to safer gambling, including a mandatory cooling-off period for gamblers as part of harm prevention strategies.
The transformation was encapsulated in the ‘Melbourne Remediation Action Plan,’ which encompassed the execution of 342 initiatives over eight strategic areas such as financial crime, compliance, risk management, governance, and the enhancement of Crown PlaySafe for harm minimisation. Additionally, the burgeoning emphasis on internal culture promised changes which stretched well beyond superficial compliance.
To ensure proper implementation and ongoing changes, the Victoria government assigned a special manager to supervise both the operations and the remediation process at the casino. The regulatory landscape was further strengthened by the establishment of the VGCCC as the sole gambling regulator in the state, armed with an expanded arsenal of regulatory powers specifically geared toward casino oversight.
Within this context, the task of determining Crown Melbourne’s suitability to retain its licence fell to the Commission. Crown’s dedication to reform, marked by a reported expenditure of over A$200 million, was recognized, enabling it to retain the licence.
Fran Thorn, the chair of the Commission, noted that the special manager’s final exposition confirmed that Crown Melbourne had effectively remedied the deficiencies outlined by the probe. Thorne further highlighted that this progress laid down critical groundwork for a sustainable transformation. She affirmed a distinct absence of maladministration or conduct pointing towards the same grave and systemic failures previously identified.
The decision is underpinned by stern expectations; Thorn was clear that in exchange for the exclusive casino licence, Victorians rightly anticipate that Crown Melbourne prioritises the safety and wellbeing of its patrons and staff, as well as its legal and ethical obligations, above profit margins.
The Commission’s vigilance will persist, with Crown Melbourne subject to future transformative action through stipulated statutory directions, specifics of which are to be disclosed. Thorn delineated that the forthcoming transformation plan will be at the core of regulatory oversight, ushering Crown Melbourne to a higher standard.
In the wake of this pivotal development, Crown Resorts faces a continued pressure to demonstrate integrity and ethical operations to retain public trust in their suitability as a casino operator, with the VGCCC prepared to act swiftly against any potential abuses.
This crucial affirmation of Crown Melbourne’s licence stands as a defining moment in its 30-year history. Citing a renewed devotion to setting the bar high in industry standards and guest welfare, Mike Volkert, property CEO, reaffirmed the endeavour to maintain focus on excellence. Ciaran Carruthers, CEO of Crown Resorts, applauded the ruling, attributing a significant portion of the transformation’s success to its acquisition by Blackstone in June 2022. Carruthers pledged to uphold Crown Melbourne’s standing as a premier, secure venue for gaming and entertainment, aiming for continual improvement in service and integrity standards throughout the industry.
