Crown Resorts Faces New Scrutiny and Potential $30 Million Penalty
The Australian gambling behemoth, Crown Resorts, finds itself embroiled in yet another costly scandal, facing a staggering penalty of $30 million AUD (approximately $19.8 million USD). This latest infraction stems from the company’s use of unauthorized blank checks, enabling individuals to engage in illicit gambling activities. These checks, it has been reported, amounted to a total value exceeding $1.5 billion AUD.
News sources in Australia indicate that the Victorian Gambling and Casino Control Commission (VGCCC) believes this practice, spanning two decades, generated profits for Crown ranging from $30 million to $70 million AUD. The VGCCC emphasized that this effectively granted gamblers an impermissible line of credit.
This is not Crown’s first encounter with substantial penalties. Just last year, they incurred an $80 million AUD fine and narrowly retained their license for their flagship Melbourne casino. An eight-month royal commission exposed a “string of appalling behaviors” that cast doubt on their suitability to operate the establishment.
Adding to their woes, earlier this year, Crown Resorts also revealed a data security breach, further damaging their already tarnished image.
While not refuting the accusations, Crown Resorts issued a statement asserting, “These practices have been discontinued, and we have implemented robust enhancements to mitigate and avert risks throughout our operations.”
Crown Resorts appears to be on a downward spiral, both financially and ethically. They were handed an $80 million AUD penalty last year for misconduct occurring between 2012 and 2016, followed by an additional $1.2 billion AUD fine. The question arises: how many more opportunities will they be afforded?
Crown Resorts finds itself facing renewed scrutiny. Following a significant financial penalty levied the previous year for neglecting its duty of care regarding responsible gaming, the company is now confronting a possible $30 million sanction – a substantial sum!
The current issue revolves around accusations of attempting to conceal questionable business dealings. The Victorian gaming regulatory body is deeply displeased and has signaled its intent to hold Crown accountable. It appears the casino’s executives are in for a challenging period as authorities meticulously examine their operations.