The Victoria Gambling and Casino Control Commission (VGCCC) has announced that Crown Resorts has been fined AU$20 million (€12.5 million) for tax breaches.
Unpaid taxes came to AU$37.4 million (€23.44 million)
According to the Royal Commission, Crown improperly claimed tax deductions by including the costs of promotions as amounts paid out as winnings. The Royal Commission also discovered that Crown deliberately hid these deductions from the VGCCC’s predecessor, the Victorian Commission for Gambling and Liquor Regulation.
Crown has been under investigation for multiple failings across its gaming operations and has already been fined AU$250 million (€156.7 million) to date. The latest breaches were only discovered when a document was found outlining unpaid taxes in a raft of other documents provided to the commission for another matter.
The commission informed the company of its discovery and Crown has since made a payment of about AU$61.5 million (€38.5 million) to cover the unpaid taxes and penalty interest. However, despite Crown’s prompt payment of the unpaid taxes, the VGCCC has imposed a fine of AU$20 million (€12.5 million).
VGCCC Chairperson Fran Thorn said:
“Crown and other gaming licensees have important obligations to pay gaming taxes to the State. Not only did Crown breach its obligations by claiming tax deductions to which it was not entitled, Crown also made significant efforts at concealment.
“The VGCCC will not tolerate this behaviour. We expect licensees to comply with their tax obligations and to be transparent in their dealings with us. We have today imposed a significant fine of $20 million on Crown to send a clear message that this type of conduct will be met with strong disciplinary action. This fine also sends an important message to other gambling operators about the importance of complying with their obligations to pay gambling taxes and the need for frank and open dealings with the regulator.”
This is the fourth time the VGCCC has taken disciplinary action against Crown for conduct uncovered by the Royal Commission.
The news of the latest fine comes just weeks after The Australian Transaction Reports and Analysis Centre (AUSTRAC) proposed and agreed a financial penalty of AU$450 million (€274.95 million) with Crown Melbourne and Crown Perth for breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.