Crown can keep its Melbourne casino licence, according to regulators in Victoria.
Retaining the licensing the Crown is in the "public interest," according to the VGCCC. Crown Melbourne employs more people than any other single location in Victoria.
The decision is the result of extensive adjustments implemented at the casino following the Royal Commission's investigation into casino licenses. What the Commission called "illegal, dishonest, unethical and exploitative" actions were severely criticised.
This casino was found to be "unsuitable" to hold a casino licence in Victoria, according to the report published in October 2021 by the inquiry. It went on to say that, despite the possible economic consequences, Crown should not lose its licence right now.
Rather, the Commission proposed a number of changes to existing procedures. Crown altered its operations on a massive scale over the next two years to meet these requirements. These comprised new, more responsible gaming duties aimed at reducing gambling-related harm, such as a required cooling-off period.
The Melbourne Remediation Action Plan was a part of this change; it featured eight workstreams and 342 projects. Financial crime, governance, compliance and risk, cultural factors, and Crown PlaySafe's damage minimisation efforts were the areas of focus.
Afterwards, the government of Victoria designated a special manager to supervise the casino's operations and cleanup. The VGCCC was established to oversee all forms of gambling in the state, with particular authority granted to it in relation to casinos.
After these procedures were completed, the Commission was tasked with determining if Crown was qualified to hold the licence. Despite Crown's best efforts, the operator was able to retain its licence after spending more than AU$200.0m (£103.4m/€120.6m/US$130.9m) on transformation.
"Systematic failures" are addressed by Crown.
In her remarks regarding the matter, Fran Thorn, chair of the Commission, stated that the special manager's final report found that Crown Melbourne corrected the deficiencies highlighted by the Commission. To attain long-term, comprehensive change, it laid "critical foundations" as well.
"Consistent with the severe and systemic failures previously identified by the Commission, there was no evidence of maladministration, or illegal or improper conduct," Thorne stated. "These shortcomings were handled.
"The people of Victoria have the right to expect that Crown Melbourne will never again put profit before everything else, including the safety of its employees and customers, as well as its compliance with legal and social obligations. This expectation is in exchange for the privilege of an exclusive licence."
According to Thorn, Crown will still face investigation in the state. Additional changes are required by way of a statutory directive; specifics will be announced soon.
The next level standard for Crown Melbourne is provided by that transformation plan, which will be central to our oversight, along with Crown's legal and social commitments, according to Thorn.
Crown Melbourne must maintain its reputation as a respectable casino operator by actively working to restore public faith in the establishment and its management. "We have served notice on Crown that we will not hesitate to take action in the event that the privilege of holding the licence is once again abused."
"Significant" milestone celebrated by Crown Melbourne
Crown will be relieved by the decision. As a result of the Commission, the operator is already subject to severe fines from the state's regulatory bodies.
Two fines totalling a record $120 million were levied against Crown Resorts by the VGCCC in November 2022 for a string of infractions. The VGCCC found that Crown had repeatedly neglected its duty to provide responsible gaming services. It discovered that some customers bet nonstop for almost 24 hours.
According to property CEO Mike Volkert, maintaining Crown Melbourne's Victoria licence is one of the most important achievements in the company's 30-year history.
Volkert emphasised that the accomplishments must remain a constant priority for all employees at Crown Melbourne. We are dedicated to consistently exceeding industry standards and prioritising the well-being of our guests in all our decision-making, since we realise that our work is far from done.
Now more than ever, Crown Melbourne is Victoria's most secure gambling and entertainment location. Inviting visitors is something we're excited to keep doing.
The impact of Blackstone
Ciaran Carruthers, CEO of Crown Resorts, was equally pleased by the decision. According to him, the effective change was greatly aided by the June 2022 acquisition of Crown by private equity behemoth Blackstone.
According to Carruthers, "Crown has pioneered one of the most complex transformations ever undertaken in Australia" since Blackstone's acquisition and the appointment of new boards and an executive leadership team.
According to Carruthers, the actions were like "fundamentally rebuilding our organisation from the inside out."
We take the responsibility and honour of holding a casino licence very seriously. Crown Melbourne is currently operating in a safe atmosphere, and I am proud of our team's accomplishments.
Our Crown is stronger and better now that we've worked together. Maintaining a laser-like focus on providing industry-leading service while minimising harm is our top priority.
