Crown Resorts Receives a Fine Worth 20 Million Australian Dollars in Victoria

Crown Resorts, the most powerful operator of land-based casinos in Australia, has received more bad news from Victoria as the local government decided to slap the company with a fine worth 20 million Australian dollars.

The Victorian Gambling and Casino Control Commission (VGCCC) was the government body that imposed the fine and explained the reason behind it was that Crown Melbourne failed to pay the proper amounts of casino tax over a long period of time.

With this fine, the total amount that Crown Resorts had to pay following decisions by the Victorian Gambling and Casino Control Commission now amounts to no less than 250 million Australian dollars. Moreover, the company reached a settlement with AUSTRAC, the Australian financial crimes watchdog, and agreed to pay 450 million Australian dollars.

Crown Melbourne was deemed unsuitable to hold a casino license following an investigation into the casino’s activity, but the local regulator decided to give the company a two-year window in which it has to return to suitability under the supervision of an independent manager.

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The latest fine was explained by the Victorian Gambling and Casino Control Commission in great detail, the local regulator pointed out that the findings came as a result of the activity of the Royal Commission which investigated the casino.

The commission found that Crown Melbourne had improperly claimed tax deductions by including the costs of certain promotional activities as amounts paid out as winnings to its customers.

The Royal Commission also found out that the casino made a deliberate effort to conceal the nature of those deductions from the Victorian Commission for Gambling and Liquor Regulation, the government body that preceded the Victorian Gambling and Casino Control Commission.

The Royal Commission uncovered the real nature of the respective deductions when it noticed a document which was setting out the amount of unpaid casino tax, a document which was disclosed by the company for other purposes.

Crown Resorts has accepted that having claimed those tax deductions was wrong and agreed to pay 61.5 million Australian dollars to the State of Victoria, an amount which comprised unpaid casino tax and penalty interest. The fine worth 20 million Australian dollars has to be paid on top of all that.

Mike Volkert, the Chief Executive Officer of Crown Melbourne, issued a statement in which he said that the casino “accepts the outcome” and promised that “under new ownership and leadership” the company is “committed to an open, constructive, and transparent relationship with regulators and stakeholders.”

Source:

, asgam.com, June 16, 2023.