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Victoria's gambling regulator and the State Government are under increasing pressure over its handling of Crown Casino after the gaming giant admitted money laundering was likely to have occurred at its Melbourne and Perth casinos.

The admission to a NSW inquiry has prompted that state's regulator to delay the opening of Crown's new multi-billion-dollar casino in Sydney.

The NSW inquiry is assessing Crown Resorts' suitability to hold a casino licence.

The revelations in Sydney about Crown's Melbourne operations have raised fresh questions over the effectiveness of the Victoria Commission for Gaming and Liquor Regulation (VCGLR) which has been approached with multiple complaints about Crown in recent years.

and The Age have exposed allegations of money laundering, links to criminal groups and overseas junket operators.

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The VCGLR has issued a show cause notice to Crown over its junket operations — in which cashed-up overseas gamblers are lured to Crown. The nation's anti-money laundering body AUSTRAC is also investigating issues at the casino.

As previously reported by the ABC, there are concerns from within the VCGLR that issues at Crown are not being taken seriously by the watchdog.

Gambling reform advocate says political donations helped Crown avoid scrutiny

Tim Costello, the chief advocate for the Alliance for Gambling Reform, said Crown's 'bombshell' admission that money laundering was likely occurring in Melbourne and Perth was 'simply extraordinary' and should be of concern to all Australians.

'It says it [Crown] has been a criminal enterprise,' he said.

'There has been wholesale money laundering going on and Crown admitted it [on Wednesday] after effectively hiding it for most of the inquiry.

'This is quite an astonishing finding that every Australian should be shaking in their boots that this has gone on for so long.'

Mr Costello said the revelations should put the spotlight back on the VCGLR and the national corporate regulator ASIC.

He has also criticised Crown's influence over Victorian politicians on both sides of the aisle.

He said the gaming giant's ties to Spring Street accounted for why allegations of criminal activity in Melbourne's casinos had gone without consequence for so long.

'Crown has captured politics [and] the politicians are silent because it gives great donations to both sides of politics,' Mr Costello said.

'That is why it has taken a New South Wales inquiry to really expose massive laundering and criminal activity here in Melbourne.'

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In 2017-18, Crown donated $35,000 to Victorian Labor and $30,000 to Victorian Liberals.

Mr Costello said he expected far-reaching organisational change at Crown with an 'embarrassed' board facing fallout from the inquiry.

'They've got to turn over most of their board. They have been utterly exposed and they have effectively just been puppets of James Packer,' he said.

'James Packer is almost certainly going to have to sell out and hand over to someone who can pass the probity test in holding a licence.'

Crown won't have licence suspended in Melbourne

Premier Daniel Andrews said the casino would not have its licence suspended in the wake of the money laundering admission but said the regulator would make further inquiries.

He also said the Government would closely examine the final report from NSW, due early next year.

'There is a sacred trust when it comes to these licences, and they need to be complied with,' Mr Andrews said.

The Opposition and the Greens have been critical of the VCGLR for not acting quick enough on Crown Casino.

Liberal leader Michael O'Brien said the commission was 'asleep at the wheel', while Greens MP Ellen Sandell said the Government must terminate Crown's licence.

Mr Andrews, who is former Gaming Minister, defended the work of the regulator.

'It is simply wrong in my judgement to say that they are waiting for others to do their job for them, nothing can be further from the truth.'

  • »News
  • »Victoria Brings Forward its Crown Melbourne Review


Photo by Lukas Blazek

The Victorian government has brought forward an investigation into Crown Casino, with the Melbourne venue at threat of losing its licence.

News.com.au reported that the Victorian Commission for Gambling and Liquor Regulation will review the state’s largest single-site private sector employer following “concerning evidence” which came to light at an NSW inquiry into Crown Sydney.

It was revealed the NSW gambling regulator last month blocked the planned launch of the casino group’s new $2.2 billion Sydney gaming complex.

The Independent Liquor and Gaming Authority halted the opening after Crown made an 11th-hour submission to the Bergin inquiry – held this year to probe the suitability of Crown Resorts to hold a Sydney gaming licence – about criminals allegedly laundering cash through Crown in Melbourne and Perth.

A dedicated commissioner will be appointed to the VCGLR to hold the seventh Crown Casino review.

The state’s Consumer Affairs, Gaming and Liquor Regulation Minister Melissa Horne said there was “a need for an immediate response” in Victoria following “concerning evidence” presented during the course of the NSW investigation.

“We’re making sure Crown Melbourne conducts its business in a transparent and appropriate manner,” she said.

“This review is needed given the evidence we’ve seen come out of the NSW inquiry.

“While we await the findings of that investigation, it’s appropriate to bring forward the next review to ensure Crown Melbourne is suitable to hold a licence in Victoria.”

The most recent investigation, the sixth Casino Review, occurred in 2018.

The ILGA inquiry will hand down its findings in February 2021.

Crown Sydney to open doors on December 28 but casino to remain shut

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Crown Resorts will be able to open its Barangaroo hotel in Sydney before the new year, but the casino is to remain dormant.

The Guardian reported in mid-December that the NSW Independent Liquor and Gaming Authority granted an interim liquor licence, but gambling remains forbidden at the venue.

Non-gaming operations have been permitted at Crown’s new high-roller casino just weeks after the ILGA said it would wait until the findings of an inquiry into Crown’s suitability to hold a casino licence were handed down in February before making a decision on whether to approve a range of regulatory items related to the casino’s gaming activities.

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ILGA chair Philip Crawford said last Wednesday that the authority was also considering two further liquor licences for other “non-gaming areas of the casino” which were due to be decided “within the week”.

“Last month, ILGA decided against approving a range of regulatory items related to the casino’s gaming activities prior to the release of the Bergin inquiry’s findings in February 2021,” Crawford said.

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“At the time, ILGA agreed to work with Crown Resorts to enable opening this month of all non-gaming areas including accommodation, restaurants, bars and entertainment areas.”

Crawford said the authority’s position on Crown’s gaming operations had “not changed” and that the interim liquor licence would only apply until April 30, 2021.

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“This will enable ILGA to consider any suitability concerns arising from the Bergin inquiry following the handing down of the report due early next year, before making a further decision regarding an extension to the licence,” he said.

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In a statement to the Australian Securities Exchange after the ILGA decision, Crown said it was “finalising its pre-opening activities and expects to progressively commence non-gaming operations at Crown Sydney from December 28, 2020.”