The Victorian Commission for Gambling and Liquor Regulation (VCGLR) has fined Crown Resorts' Melbourne casino.

The VCGLR has fined Crown Melbourne a maximum of AU$1m (US$777,305) for failing to comply with regulatory requirements in relation to junket operations.

The Commission assessed that Crown’s engagement with junket operators was not robust enough to consider the ongoing “probity of junket entities."

Once analysing the individuals involved and the process implemented by Crown, the Commission concluded that Crown’s operations did not meet the internal control statements approved by the Commission.

The VCGLR said the casino also failed to gather necessary information around junket operators, maintain records on junket probity decisions and that decisions made on probity assessments were not made by those who understood Crown’s regulatory obligations.

As well as the fine, the VCGLR has prohibited Crown from dealing with junket operators at the Melbourne casino, until the casino has improved its processes and procedures.

Chairman of the VCGLR, Ross Kennedy, said that while this is not the first time the Commission has taken disciplinary action against Crown, this is the first time Crown will be fined the maximum of AU$1m.

Kennedy said: “That fine reflects the seriousness of this matter, and the fact that Crown’s failure to implement a robust process occurred over an extended period.

“Robust processes must be implemented to ensure Crown’s Melbourne casino remains free from criminal influence and exploitation. These are strict and legislated regulatory requirements, and this is an area where Crown has repeatedly failed.”

Crown’s executive chairman, Helen Coonan, added: “Crown continues to engage with the VCGLR and the Victorian Government in relation to its reform agenda. These reforms and changes to our business are aimed at delivering the highest standards of governance and compliance, as we restore public and regulatory confidence in our operations.

“As part of this reform agenda, Crown has already ceased dealing with all junket operators.”