Following an investigation, the Victorian gambling regulator will take disciplinary action against Crown Resorts (CWN.AX) and may levy fines of up to A$100 million ($75.82 million) on the Australian casino operator.
The Victorian Gambling and Casino Control Commission (VGCCC) announced on Tuesday that it will initiate disciplinary proceedings into the “China Union Pay mechanism,” which was revealed during Victoria’s royal commission into the Crown’s license.
Crown announced in a statement on Wednesday that it will fully cooperate with the VGCCC in regards to the findings of the royal commission report.
Crown’s stock fell 0.5 percent in early trading.
The China Union Pay process involved the use of the China Union Pay bank card between 2012 and 2016 to “allow international patrons to access funds in order to gamble at Crown Melbourne,” evading Chinese currency restrictions, according to the Royal Commission into the Casino Operator and Licence (RCCOL).
“Chinese customers were aided in illegally moving up to A$160 million in money,” according to the RCCOL.
“As a starting step, we’re responding to the Royal Commission’s conclusions that Crown’s China Union Pay scheme violated major Victorian regulatory requirements, was illegal, and represented significant misconduct,” VGCCC Chair Fran Thorn said, promising that more will follow.
Crown was found inappropriate to hold a gaming license in Melbourne by an inquiry in October, but it was allowed to operate its highest-earning casino under supervision.