Appendix G

Entry by an excluded person

‘Thousands’³

Instances where people subject to self-exclusion orders entered the casino. Crown Melbourne stated that given the large number of incidents since 1 January 2010, it did not include details of each incident in its responses.

Entry by a minor

At least 98

Instances where:

• babies and young children entered or were found in a gaming area with their families
• teenagers entered the casino and either attempted to gamble or did gamble.

Some disclosures specified a time period during which minors entered the gaming area on ‘various dates’. The reports did not specify how many times each actual or potential breach occurred during that period.

Gambling by an intoxicated person

At least seven

Instances where intoxicated people were gambling or were in the gaming area.

Failure to display RSG information

At least six

Instances of consolidated multiple actual or potential breaches that included:

• failure to display responsible gambling messaging (for example, through brochures and stickers on machines) in required areas
• failure to display signage notifying patrons as to where game rules are located
• non-compliance with requirements relating to the visibility of clocks.

Non-compliance with RSG training requirements

At least four

Instances of consolidated multiple actual or potential breaches relating to multiple employees in relation to:

• failure to complete training by the due date
• inadequate training records.

Other RSG breaches

At least five

Issues including:

• irrational conduct relating to the Self-Exclusion Program (for example, initially requiring a person to travel from Canberra to Melbourne to self-exclude in person)
• missing Observable Signs in relation to one at-risk gambler (following media reports about that individual).

Crown Melbourne noted that its responsible gambling records include voluminous patron complaints that may identify actual or potential breaches of the Gambling Code.

General breaches related to gameplay and gaming operations

At least 70

Instances where:

• Crown Melbourne used ‘blanking buttons’ (which includes removing gambling options, disabling lower bet provisions and allowing prohibited autoplay) on 17 gaming machines in March and April 2017
• Crown Melbourne issued ‘picks’ that were being used to hold down EGM buttons for continuous play
• poker tournaments were held off the gaming floor
• there were numerous EGM issues including:
  • errors identified in EGM Game IDs
  • EGM touchscreen errors
  • other general errors on EGMs
  • EGMs operating with the incorrect time displayed for 9 hours
  • EGMs operating in continuous/unrestricted mode
  • five EGMs being below the required illuminance level
  • incorrect payouts from EGMs.
• a Jackpot-linked machine was run as a standalone machine
• a Log of Chip Rotations was not completed
• patrons were allowed to talk to each other during Pai Gow (in breach of the Pai Gow Rules)
• there was a failure to comply with Caribbean Stud Poker Rules by not incrementally increasing the jackpot
• general poker, blackjack, Baccarat and roulette rules were not followed
• there were bias/balance issues on a Big Wheel (BW3109) and failure to follow procedures
• playing cards were found around the Melbourne Casino outside of the gaming areas
• there was a failure to pay winnings to a patron
• patrons experienced incorrect dealing in card games
• dealers failed to establish their own hand or correctly compare hands in Bonus Texas Hold’em.

Games played without the required number of cards or the wrong colour cards

At least 50

Instances where:

• Pontoon games were dealt one card short
• Texas Hold’em Poker games were played with a reduced number of cards
• Poker games were played with fewer cards than required for eight hands due to dealer error
• Pontoon games were played with the wrong colour cards
• Blackjack games were dealt with insufficient cards.

Semi-automated table with no dealer terminal connected

At least 50

This example included a failure to have a dealer terminal connected to semi-automated table games.

Fully-automated tables with no ability to set daily loss and time limits and operating despite closure

At least three

Instances where:

• the VCGLR issued a Notice to Show Cause due to operational changes to the fully-automated tables that meant players could not set daily loss or time limits
• half the fully-automated tables continued operating on the gaming floor six hours after they were closed in SYCO (the Crown Melbourne electronic customer relationship management system).

General AML and CTF-related compliance breaches (actual or potential) leading to increased risk of money laundering and terrorism financing

At least 300

Instances where:

• AUSTRAC identified numerous compliance issues relating to AML/CTF Rules during an investigation
• there were failures in the transaction aggregation process, leading to transactions not being monitored correctly
• SMRs contained incomplete data and information
• threshold reports contained expired identification numbers
• in relation to IFTIs, there were:
  • failures to report IFTIs on time
  • incorrect IFTIs submitted to AUSTRAC
  • failures to report IFTIs to AUSTRAC at all
• in relation to customer identification, there were:
  • failures to obtain residential addresses
  • the use of GPO boxes instead of residential addresses
  • the acceptance of expired identification from customers related to threshold transactions
  • failures to sight any identification at all
  • failures to verify identification
• there was inappropriate disclosure of information to legal advisors and other external persons (including to Mr James Packer)
• there were failures to report suspicious matters and transactions
• there were failures to implement adequate controls relating to AML/CTF risks in the Sun City Room, including in relation to cash buy-ins and dealings with junket operators
• employees made remarks relating to money laundering and Crown staff being aware that it occurs
• there was a failure to input all required information into SYCO
• there were deficiencies in Crown risk assessments relating to AML, CTF and junket operations.

Junket due diligence process failures

At least 30

Instances where:

• there were shortcomings in the junket due diligence process and person of interest processes that led to breaches relating to transaction monitoring and AML/CTF breaches
• there was a failure to notify the VCGLR of 15 non-resident junket operators over a seven-year period.

Failure to ensure all employees are fully trained in AML/CTF

At least 30

An internal audit that identified that nine Crown Melbourne employees failed to complete AML/CTF Program training on time.

Failure to monitor bank deposits into the Southbank account

Multiple from August 2013 to December 2019

Instances where money was deposited into the Southbank account without appropriate monitoring.

Non-compliance with controls relating to the junket program or premium player program

At least 44

Crown Melbourne often consolidated multiple instances of procedural non-compliance, for example:

• failure to sign and/or date Junket Program Agreements or Premium Player Program Agreements
• incomplete player details in relevant agreements
• discrepancies between players recorded in SYCO and those recorded in the relevant agreements
• insufficient player documentation in SYCO (for example, failure to record a player’s residential address or scan a driver’s licence).

Failure to provide information to the regulator

At least 14

Instances where Crown Melbourne failed to notify the regulator of certain matters as required, for example:

• where a person had become an associate of Crown Melbourne
• where a licensed employee had ceased working at the casino
• where Crown Melbourne had commenced dealings with a junket operator
• where Crown Melbourne failed to produce documents to the regulator within the required timeframe and produced the documents late.

Non-compliance with Crown Melbourne internal controls

At least 11

Instances of non-compliance with Crown Melbourne internal controls and administrative and accounting procedures, for example:

• writing off bad debts without permission from the regulator
• employees failing to sign various forms relating to inventory or deposits
• inadvertently leaving Automated Transaction Station drop boxes (locked containers that hold cash or chips) on the floor for two days.

Advertising or promotion non-compliance

At least eight

Instances relating to provisions regulating gaming advertising or the conduct of promotions, for example:

• airing an advertisement that included a reference to gaming
• displaying gaming machine advertisements outside of the casino boundary
• sending gaming machine material to members who did not consent to receiving gaming machine advertising
• conducting a competition otherwise than in accordance with how Crown Melbourne advertised the conduct of the promotion.

Other

At least 20

Instances involving:

• player information posters being obscured or not visible in the gaming area
• late payment of penalty interest on gambling taxes
• giving the incorrect amount of front money to a patron
• informing the regulator that a bank account in Thailand had been closed when it had in fact remained open
• failure to file the 2018 Annual Financial Report by the due date.

Crown Melbourne also noted that it had already self-reported various other matters to relevant agencies, including:

• underpayment of wages to certain employees
• failure to make superannuation guarantee contribution payments for a number of sole proprietor contractors
• failure to notify Australian Border Force of matters concerning employees holding Temporary Work (Skilled) visas.