Crown Melbourne has been fined $2 million by the Victorian Gambling and Casino Control Commission (VGCCC) for allowing 242 self-excluded individuals to gamble over an 8-month period. Self-exclusion is a harm-prevention initiative that helps individuals bar themselves from gambling venues, and it is a legal requirement in Victoria for casinos to enforce this ban. The breaches were attributed to system failures rather than deliberate non-compliance, though they exposed individuals to potential gambling harm. The VGCCC has mandated that Crown engage an independent expert to evaluate and improve its self-exclusion program, part of a broader transformation effort following the Finkelstein Royal Commission.

VGCCC Fines Crown Melbourne $2 Million for Self-Exclusion Breach

Crown Melbourne has been penalized $2 million by the Victorian Gambling and Casino Control Commission (VGCCC) for failing to uphold its self-exclusion obligations. The casino allowed 242 individuals who had self-excluded to place bets over a span of 8 months, from October 2023 to May 2024, contravening Victorian law. This fine marks a significant enforcement action by the VGCCC as it continues to scrutinize Crown's operations.

The fine comes amidst broader regulatory efforts to tighten oversight on gambling institutions, ensuring they adhere to harm-prevention protocols designed to safeguard vulnerable individuals.

Self-Exclusion Program and its Importance

The self-exclusion program is a crucial industry-operated initiative designed to protect individuals from the dangers of compulsive gambling. Under this system, individuals voluntarily bar themselves from entering gambling venues to prevent further engagement in harmful betting activities.

In Victoria, it is a legal offence to allow any person who has opted into this self-exclusion program to enter, remain, or gamble within a casino. The program relies on strict compliance by gambling operators to monitor and prevent such individuals from accessing their services.

System Failures Lead to Breach of Regulatory Obligations

While the VGCCC acknowledged that Crown Melbourne’s breach of self-exclusion policies was not the result of a deliberate or egregious violation, the issue was attributed to “system and control failures.” These failures allowed a significant number of self-excluded individuals to slip through the monitoring systems and continue to place bets at the casino.

Despite the absence of malicious intent, this breach underscores a fundamental lapse in Crown's internal controls and systems, raising concerns about the efficacy of its regulatory compliance measures and its ability to protect at-risk individuals from gambling harm.

VGCCC Chair Emphasizes Crown’s Responsibility

Fran Thorn, Chair of the VGCCC, highlighted the importance of the casino’s role in protecting individuals who have voluntarily chosen to exclude themselves from gambling. She stressed that self-excluded patrons must be able to trust that casinos will take all necessary steps to enforce their decision. By failing to uphold this responsibility, Crown placed individuals at risk of further harm.

“By allowing people who have self-excluded to enter the casino and gamble, Crown has put them at risk of experiencing further gambling harm,” Thorn said. The chair also recognized that some self-excluded individuals actively evade detection, making enforcement more challenging.

Independent Expert Review to Strengthen Self-Exclusion Program

In response to this significant breach, the VGCCC has issued a directive for Crown to engage an independent expert to evaluate the effectiveness of its self-exclusion program. The independent expert will provide a comprehensive assessment of Crown’s current systems and make recommendations for improvements in its monitoring and enforcement processes.

The independent review will address critical weaknesses in Crown's approach to self-exclusion enforcement, ensuring the casino can more effectively prevent breaches in the future.

Broader Reform Efforts Following the Finkelstein Royal Commission

This fine and directive come as part of broader efforts by the VGCCC to ensure Crown Melbourne’s ongoing reform and remediation following the findings of the Finkelstein Royal Commission. Earlier this year, the VGCCC mandated that Crown implement a transformation plan to address deficiencies in its operations and improve its compliance with regulatory standards.

The Finkelstein Royal Commission had uncovered significant operational and governance failings within Crown, leading to heightened scrutiny and a stringent regulatory framework aimed at reforming the casino’s practices.

Future Implementation of Expert Recommendations

Once the independent expert concludes their assessment, Crown will be obligated to implement the recommended changes. This is expected to bolster the casino’s compliance framework and strengthen its ability to protect vulnerable patrons from gambling harm.

The VGCCC's actions underscore the importance of maintaining robust controls in the gambling sector, particularly as casinos like Crown continue to be pivotal players in the industry. The expectation is that Crown Melbourne will not only improve its self-exclusion protocols but also regain public trust by addressing the systemic issues that allowed these breaches to occur.

This case serves as a reminder of the critical role that casinos and gambling operators play in safeguarding individuals from the risks associated with gambling addiction. With the VGCCC closely monitoring Crown’s reform progress, the implementation of more rigorous control systems is likely to set a precedent for how the industry approaches self-exclusion and harm prevention in the future.