The China Union Pay process might cost the Crown up to AU$80 million.
According to the VGCCC's investigation, customers were able to utilise CUP debit or credit cards to access gambling cash at the Crown Melbourne casino from 2012 to 2016.
According to the VGCCC, Crown made about $32 million from this illicit activity, which allowed them access to nearly $164 million.
After reviewing Crown's China Union Pay method, the Royal Commission into the Casino Operator and Licence (RCCOL) concluded that it was unlawful and violated sections 68(2)(c) and 124(1) of the Casino Control Act 1991.
As it did with the CUP cards, Crown is prohibited by Section 68 from giving money or casino chips in any transaction involving a credit or debit card. The RCCOL stated that this action is being taken to limit harm, promote responsible gaming, and prevent gambling that is funded by criminals.
The proper supervision of Crown Melbourne's financial handling and the full payment of Crown's taxes and other financial obligations to the state and public are ensured by the accounting records required by Section 124.
The China Union Pay method was deemed unlawful and "absolutely unacceptable" by Crown Melbourne, which also acknowledged that the VGCCC's sanction was reasonable.
With the maximum permissible penalties increasing from $1 million before to legislative changes to $100 million, this is the first time the VGCCC has utilised its greater enforcement powers under the Casino Control Act.
In a statement made by VGCCC chairperson Fran Thorn, Crown's CUP process was described as "a clandestine, deliberate process" that violated the Casino Control Act and was also designed to help customers circumvent China's prohibitions on foreign currency exchange.
Crown knew the CUP procedure might be illegal, but they still went ahead and did it nevertheless. Doing so demonstrated a complete lack of concern for fulfilling its regulatory duties. It really tried to conceal its activities.
Crown got rich off of its unlawful actions. Crown will be clearly reminded of its regulatory obligations and will lose the revenue it earned from the CUP process as a result of the fine.
Crown stated: "Crown acknowledges its historic failings" in response to the fine. By 2016, the China Union Pay procedure had come to an end. As soon as the board of directors of Crown became aware of this past behaviour, they ordered an independent inquiry and informed other authorities, including the Victorian Royal Commission and the Victorian Commission for Gambling and Liquor Regulation (the agency that would later become the VGCCC).
"The senior management and Board of Crown are fully dedicated to implementing a thorough program of reforms and remediations to guarantee that Crown provides a gaming environment free from harm. We will maintain our cooperation with the VGCCC regarding any issues that arise from the Victorian Royal Commission Report."
The VGCCC further stated that it became clear during the disciplinary procedures that additional methods, beyond the CUP process, existed after 2016 that allowed CUP cards to access cash at Crown Hotels, which might have been utilised for gambling.
The current disciplinary processes did not include consideration of this, and Crown Melbourne believes that these transactions do not violate the Casino Control Act.
But the VGCCC has chosen to look into these deals on its own and come to its own conclusions regarding whether or not any other breaches happened after 2016.
Crown may face additional disciplinary action from the VGCCC over the other Royal Commission findings, which could result in fines of up to $100 million apiece.
Due to "illegal, dishonest, unethical and exploitative" behaviour, Crown was deemed unfit to have a casino licence in Victoria in a Royal Commission report that came out in October 2021.
The Bergin investigation had already concluded that Crown was unfit to run a casino in NSW, and further expanded upon that finding. Additionally, the Barangaroo area of Sydney's casino operators were found to be inadequate.
