An AUS$450m for Crown in Australia. In all my time as an online casino entertainment journalist, I’ve never seen a fine this large! (Photo by Arvin Wiyono on Unsplash.com)
In a landmark move, scandal-plagued Crown Resorts, Australia’s premier gambling operator, has been hit with an unparalleled AUS$ 450 million (£232.98m/US$301.17m) penalty for grave anti-money laundering lapses.
Australia is not the friendliest of countries when it comes to casino gambling. There are tight rules and regs for land-based establishments, particularly video slots. To make matters worse for casino game enthusiasts, there are no casinos online for real money Australia has to offer because the law forbids it. Only online sports booking is allowed.
The country is also rigorous on the land-based casinos that do operate. And I agree with a bit of law and order. When casinos continue to breach the rules, then fines are necessary.
But what about AUS$ 450 million? Is this too much? Or did Crown break the rules so flippantly that this fine, close to half a billion?
Historically associated with the Packer dynasty and holding significant casino assets in Melbourne, Sydney, Perth, and London’s prestigious Aspers, Crown Resorts has been controversial for years.
In a significant development, Blackstone, the private equity behemoth, acquired Crown in a US$8.87 billion (£4.59bn/US$5.93bn) deal in June 2022. However, the acquisition didn’t mark the end of Crown’s troubles.
Legal Complexities: The company faced severe legal complications related to its dealings in the Far East, allegations of money laundering, and significant breaches in responsible gambling, notably in its Melbourne and Perth operations. Do ussie dollars land on the casino owner’s lap?
The Regulator’s Statement on Crown’s Failures
According to a declaration by the Australian Transaction Reports and Analysis Centre (Austrac), the regulatory authority found the Crown’s anti-money laundering (AML) and counter-terrorism financing (CTF) measures at its Crown Melbourne and Crown Perth casinos seriously wanting.
Austrac cited:
- Lack of adequate systems and controls to manage risks.
- Continued association with high-risk activities and dubious entities linked to organised crime.
- Engagement in over 75 suspicious activities, involving over AUS$23 million in cash (£11.9m/US$15.39m), in a private gaming room at Crown Melbourne between March 2016 and December 2018.
Acting AUSTRAC Chief Executive Peter Soros highlighted: The casino industry’s inherent vulnerability to criminal exploitation, stating that the AUS$ 450 million fine stands as one of the most substantial penalties ever levied on a casino worldwide.
Crown’s CEO Responds
In the wake of the penalty, Crown CEO Ciarán Carruthers issued a statement emphasising the company’s commitment to change. Under its ‘Future Crown’ transformation program, the organisation has implemented extensive reforms and invested heavily to enhance financial crime compliance, aspiring to global best practices for the gaming sector. Carruthers firmly asserted the Crown’s zero tolerance for money laundering or terrorism financing.
Positive Takeaways
- Under the new ownership and leadership, Crown’s commitment to a transformation program, ‘Future Crown,’ displays a proactive approach to remediation.
- The company’s substantial investment in fortifying financial crime compliance indicates a dedication to global best practices.
Negative Takeaways:
- The historic AUS$450 million fine poses a financial setback and severely tarnishes Crown’s reputation.
- Past dealings with entities linked to organised crime and the numerous suspicious activities at Crown Melbourne underscore deep-rooted operational flaws.
See the total figures & breakdown: The fine has been broken down via the Attorney-General’s portfolio. See the Crown ordered to pay AUS$ 450 million penalty for the official report.
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