Blackstone-owned Crown Resorts has been allowed to keep its license for operating its flagship Melbourne casino, the Victorian Gambling and Casino Control Commission (VGCCC) announced on Tuesday.
The decision comes over two years after the Melbourne casino came under government supervision due to breaches of anti-money laundering laws. The VGCCC stated that it is in the public interest to allow Crown Resorts to continue its operations in Melbourne.
“Today, the commission is satisfied that the systemic failings of Crown Melbourne are a thing of the past. But ongoing suitability will be significantly demonstrated by how Crown responds to instances of operational failure, not by their total absence,” VGCCC Chair Fran Thorn said at a media briefing.
Thorn expressed confidence in Crown Resorts’ ability to maintain operational standards, citing findings from the VGCCC and the company’s commitment to its transformation plan.
Crown Resorts, in response to the regulator’s decision, affirmed its dedication to compliance with industry regulations in a press statement.
Crown Resorts CEO Ciaran Carruthers said: “Over 10,000 pages of documentation have been submitted and 770 remediation activities have been delivered to our state regulators, fundamentally rebuilding our organization from the inside out.”
Last year, Crown Resorts agreed to pay an A$450 million ($294 million) fine for contravening anti-money laundering laws. This came amidst allegations of governance lapses that prompted inquiries across various states where it operates, including an investigation by the country’s financial crime watchdog.
Despite the regulatory challenges, Crown Resorts was permitted to continue its operations in Victoria state considering the economic impact of revoking the company’s license. Crown Resorts, which was taken private by Blackstone in 2022, is Victoria’s largest single-site private sector employer with about 11,500 staff.
State governments initiated inquiries into Crown Resorts following media reports in 2019 alleging its involvement with foreign tour operators linked to organized crime and accusations of overlooking money laundering activities.