Crown fined AU$20 million for Victoria's casino tax infringement.

Australian land-based casino operator Crown Resorts has been directed to pay a fine of AU$20.0m (£10.8m/€12.6m/US$13.8m) for breaking tax laws in Victoria.
Australia Under Crown
The fine answers results released by the 2021 Royal Commission on the Casino Operator and Licence (RCCOL).

The RCCOL claims Crown fraudulently claimed tax deductions by counting the expenses of several marketing events as amounts paid out as wins. Crown Melbourne casino in Victoria is administered by the operator.

Furthermore discovered was the operator's intentional hiding of the nature of these state regulator deductions during the 2013–21 focus period.

Part of this period was under regulation by the Victorian Commission for Gambling and Liquor Regulation. It was eventually superseded by the Victorian Gambling and Casino Control Commission (VGCC).

Only until the RCCOL came upon a document outlining the quantum of unpaid casino tax did the VGCCC disclose the actual nature of the deductions. Among the copious of records Crown sent the Royal Commission for other uses was this.

Crown said it had been improper to seek the tax deductions once the Royal Commission exposed its behaviour. Since then, Crown has given the state about $61.5 million, split between $24.1 million in penalty interest and $37.4 million in delinquent casino tax.

But the nature of the hack was such, the VGCCC also decided to give the operator an extra fine of $20.0m.

Important attempts at hiding
"Crown and other gaming licensees have important obligations to pay gaming taxes to the state," VGCC chairman Fran Thorn stated. Crown not only violated its responsibilities by claiming tax deductions to which it was not entitled but also made major efforts at concealment.

The VGCCC cannot accept this kind of behaviour. Licensees should be open in their contacts with us and follow their tax responsibilities. 

"We have today fined Crown $20.0m in order to make it abundantly evident that this kind of behaviour will be dealt with severe disciplinary action. 

"This also sends a strong message to other gambling operators on the need of following their obligations to pay gaming taxes and the need of honest and open dealings with the regulator."

Crown Melbourne CEO Mike Volkert responded by stating he embraced the VGCCC's decisions and conclusions as well as those of the Royal Commission.

"These historical breaches, decisions and actions have no place at Crown and under new ownership and leadership we are committed to an open, constructive and transparent relationship with our regulators and stakeholders as well as improving internal controls and our regulatory reporting requirements," Volkert said.

"Our Future Crown program is driving whole-of-company reform; our goal is to create a Crown that surpasses community and stakeholder expectations.

"This practice stopped in 2021 and Crown has since made the necessary payments to satisfy its casino tax liabilities."

Discipline is action.
The VGCCC has now taken disciplinary action against Crown for behaviour unearthed by the Royal Commission using increased enforcement powers four times. The VGCCC has fined Crown altogether $250.0m since gaining these authorities.

For a slew of Australian state errors last year, the VGCCC fined two fines reaching a record $120m. Over several years, Crown had neglected to intervene to stop gambling damage, so breaching its responsible gambling commitments.

Last year too, the VGCCC fined Crown's China Union Pay $80 million. Between 2012 and 2016, Crown Melbourne unlawfully let customers access money to gamble using CUP credit or debit cards, according a VGCCC investigation.

Crown's Melbourne and Perth casinos negotiated a proposed $450m penalty with Australia's counter-organised crime financial agency for their violations of anti-money laundering (AML) regulations last month.

Crown's consent to the enforcement action signals the end of a process started more than a year ago as the company deals with ongoing regulatory investigation for past AML shortcomings.