Crown Resorts, Australia’s largest gaming and entertainment group, has reached an agreement with the Australian Transaction and Analysis Centre (AUSTRAC) to pay a $450 million fine for historic violations of Australian anti-money laundering laws at its Melbourne and Perth casinos.
Admission of fault:
Prior to reaching the aforementioned agreement with AUSTRAC, Crown has admitted that “it operated in contravention of the Anti-Money Laundering and Counter-Terrorism Financing Act.” In addition, as part of the deal, Crown has admitted that “it failed to assess the money laundering and terrorism financing risks facing its casinos, and did not have appropriate risk-based systems in place to mitigate the risks.” Also, the company has admitted that it “did not have a transaction monitoring program that was appropriate to the nature, size and complexity of their business and did not conduct appropriate ongoing customer due diligence on a range of specific customers who presented higher money laundering risks.”
In this regard, in a statement, Crown Resorts said: “The decision marked a significant step in rectifying our failings of the past.” Furthermore, Crown’s CEO Ciarán Carruthers added: “We are pleased to have reached this agreement with AUSTRAC, noting that it is still subject to consideration and approval by the Federal Court and we await that decision. We take seriously the responsibility we have to the community, to law enforcement, to our industry and stakeholders to ensure that we continue to comply with our AML/CTF obligations. There is no place for money laundering or terrorism financing at Crown or anywhere within our communities, and we will continue to invest in developing a sophisticated and robust framework, supported by the right capabilities to combat this illegal behavior. We are committed to implementing these reforms to make Crown a better business and lift the standards for the entire industry.”
The fine requires Federal Court approval:
However, if the fine is given necessary validation by the Federal Court, it would be the third-biggest fine in the history of an Australian corporations. The first two are:
- Westpack – it was fined a record $1.3 billion for over 23 million anti-money laundering violations;
- Commonwealth Bank – it was fined $700 million for so-called “intelligent deposit machines” that permitted millions of dollars to pass through to drug importers.
What’s more, the projected approval could be modified by the Federal Court, with a hearing scheduled for July 10 and 11. In this regard, AUSTRAC CEO Nicole Rose said in a statement: “Crown’s contraventions of the AML/CTF Act meant that a range of obviously high-risk practices, behaviors and customer relationships were allowed to continue unchecked for many years. Crown has sought to respond to the failures identified in these proceedings by enhancing its approach to ML/TF risk management and investing in its financial crime compliance. We continue to work closely with Crown to ensure that their AML/CTF program and systems are compliant and fit for purpose into the future.”
Additionally, the company was the topic of royal commissions in Victoria and Western Australia, as well as an investigation led by a judge in New South Wales. Bergin’s investigation revealed that “Crown facilitated money laundering and partnered with operators that had links to organized crime.” The company was also found ineligible to possess a gaming licence in all three states.
Blackstone to get out of the deal if the fine exceeds $750M:
During February 2022, Crown Resorts was acquired by global private equity group Blackstone for $8.9 billion. Under the terms of the takeover, Blackstone was permitted to get out of the agreement if the penalty was over $750 million.
Relatedly, during November, Crown was fined $120 million by the Victorian Gambling and Casino Control Commission (VGCCC) for violating its responsible service obligations. Also, Crown was fined an extra $30 million by the VGCCC in April for giving a permission to players “to cash bank checks made out to themselves, exacerbating gambling harm and likely aiding criminal infiltration by money launderers”.
The legal status of online casinos in India is complex and varies by state. While there is no federal law that explicitly addresses online gambling, the legality depends on state regulations and the type of gambling involved.
Key Points:
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No National Law: India does not have a specific national law regulating online casinos. However, the Public Gambling Act of 1867 prohibits operating physical casinos and gambling houses, but it doesn't cover online platforms, leaving a legal grey area for online gambling.
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State-Specific Laws: Some Indian states, like Goa, Sikkim, and Daman, have legalized land-based casinos, and others, such as Sikkim, have also licensed online gambling. Many states have banned gambling altogether, including online gambling.
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Online Sports Betting: Betting on sports, particularly cricket, is very popular in India. However, it's only explicitly legal in some states like Sikkim and Nagaland, which have laws permitting online gaming and betting.
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Legal Gray Area: Many international online casinos accept Indian players and operate legally under licenses from offshore jurisdictions (like Curacao or the UK Gambling Commission). As long as players are gambling on licensed platforms, the risk is minimal, but local authorities may still choose to regulate or restrict online gambling.
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Cryptocurrency: Some Indian players prefer using cryptocurrencies (like Bitcoin) for online gambling, as it provides a layer of anonymity and security.
While online casinos aren't explicitly legal across all of India, many international casinos accept Indian players, and online gambling continues to grow in popularity. Players should ensure they use licensed platforms and understand local laws before engaging in online gaming.
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