ShareCrown Resorts, the Australian casino giant, is awaiting a ruling on whether it will have to pay a record-breaking AU$450 million (US$299 million) penalty for anti-money laundering (AML) failings.
The fine, which would be the largest gaming regulatory penalty in history, is related to 546 AML law violations at the company's casinos in Perth and Melbourne.
Largest Fine in Gambling History
The Australian Transaction Reports and Analysis Centre (AUSTRAC) and Crown Resorts have already agreed to the penalty, which is now awaiting approval from Judge Michael Lee.The most significant issue in the case was Crown Resorts' failure to vet wealthy gamblers before allowing them to play in private rooms. The company also did not implement proper AML systems despite receiving prior warnings. Judge Lee noted that it is challenging to determine the true extent of the AML violations due to the lack of proper monitoring and record-keeping.
If the fine is approved, Crown Resorts and AUSTRAC have proposed an immediate payment of AU$125 million (US$83 million), followed by another AU$125 million (US$83 million) within a year, and the final AU$200 million (US$133 million) due in two years.
This fine comes after a series of penalties and investigations into Crown Resorts' operations. In May 2023, the firm agreed to pay a AU$450 million ($294 million) fine for breaking anti-money laundering laws, which was the third-largest fine ever for an Australian company.
Since 2020, Crown Resorts has faced a total of AU$680 million in penalties due to accusations of ignoring organised crime and employee safety issues. The company has also since stopped doing business with foreign travel agents, or "junkets," who brought in high roller Chinese gamblers, and replaced most of its leadership in an effort to demonstrate improved governance systems.
In addition to the AML-related fines, Crown Resorts has faced other penalties for various breaches of the law. In November 2022,it was fined a record AU$120 million by the Victorian Gambling and Casino Control Commission (VGCCC) for responsible gambling breaches and various other issues.
Only last month, the VGCCC issued another fine of AU$13 million for tax evasion, after discovering that Crown Resorts routinely and falsely claimed deductions by listing different marketing promotions as winnings it paid out to customers. In April 2023, the company was fined AU$30 million for providing gamblers with a line of credit they should not have been able to access.
Despite the numerous fines and investigations, Crown Resorts has repeatedly promised to make efforts to address the issues raised and work constructively with regulators and the government but the negative press just keeps on piling up.
