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VGCCC imposes record fines totalling $120 million on Crown Melbourne for Responsible Service of Gambling breaches

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The Victorian Gambling and Casino Control Commission (VGCCC) has taken disciplinary action against Crown Melbourne for failing its Responsible Service of Gambling obligations, imposing two fines totalling $120 million.

The Royal Commission into the Casino Operator and Licence found that Crown:

  • breached its code of conduct for the Responsible Service of Gambling over many years by consistently failing to intervene to prevent gambling harm allowing customers to often gamble for long periods without a break, sometimes for more than 24 hours, and
  • failed to comply with a statutory direction by the regulator to take all reasonable steps to prevent patrons from using plastic picks and other devices to simulate ‘automatic play’ when gambling on certain electronic gaming machines (or ‘pokies’).

Crown has accepted disciplinary action should be taken and the need for it to continue working on reforms to address these and other Responsible Service of Gambling obligations.

Chairperson Fran Thorn said:

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“At the Royal Commission, Crown accepted the Responsible Service of Gambling as both a legal obligation and a condition of its social licence to operate. For a long time, Crown failed in its legal and moral obligation to ensure it provided its gambling products and services in a manner which minimised potential harm to its patrons, their families, friends and communities.

“The record fines totalling $120 million that we have imposed on Crown today will send a powerful message to Crown that the Commission will not tolerate misconduct that exposes our community to increased risks of gambling related harm.

“These were not isolated breaches. They were part of a pattern of extensive, sustained and systemic failures by Crown that spanned roughly 12 years.”

“We urge all gambling licence holders to read this decision. This disciplinary action also sounds a warning to all in the Victorian gambling industry that we expect them to do everything they can to minimise the harmful impacts of gambling. The Commission will be resolute in pursuing our new requirement to regulate for harm minimisation, and the industry can expect further action from the Commission on this matter.”

This is the second time the VGCCC has used its stronger enforcement powers to take disciplinary action against Crown for conduct uncovered by the Royal Commission. In May this year the VGCCC fined Crown $80 million over its China Union Pay process. This latest series of fines brings the total fines imposed on Crown by the VGCCC since receiving its strengthened enforcement powers to $200 million.

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The VGCCC is also considering further disciplinary proceedings against Crown related to the other findings of the Royal Commission.

Background

The Royal Commission’s findings on Crown’s Responsible Service of Gambling obligations are set out in Chapter 8 of its final report.

Section 69 of the Casino Control Act 1991 makes it a condition of the casino licence for the casino operator to implement a Responsible Service of Gambling code of conduct that complies with certain regulations and Ministerial directions.

Section 23 of the Act is a provision which provides that the VGCCC may give to a casino operator a written direction that relates to the conduct, supervision or control of operations in the casino, and that the operator must comply with the direction as soon as it takes effect.

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Australia

NSW: Minns Government Moves to Ban Gambling Advertising from Trains

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The Minns Government has moved to ban gambling advertising on public transport in NSW.

The prohibition applies to Transport owned and controlled assets, including internal and external advertising on trains, metro, buses, light rail, train stations and ferry terminals.

Transport operates one of the largest portfolios of advertising assets across Australia. This includes 798 advertising boards at Sydney train stations, 49 road facing digital billboards, adverts on up to 3711 urban buses, 76 trams and across the Tangara train fleet.

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The ban extends to all casino, lottery and online betting advertising.

The NSW Government will now work with multiple advertising contract holders to implement the required changes over the next 12 months.

Transport’s advertising suppliers must ensure that all advertising material complies with all applicable laws, accepted industry standards and codes of conduct established by the advertising industry for example, the Australian Association of National Advertisers (AANA) Advertiser Code of Ethics and AANA Code of Ethics Practice Note.

There are also additional rules that apply to Transport’s contract holders. These include a ban on political advertising on all assets, which applies equally to all political parties.

Where assets are not owned by Transport (e.g. bus stops, retail outlets or nearby private property), the NSW Government will work with the relevant entitles to see how their advertising can align with the gambling advertising ban.

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This is the latest in a suite of reforms introduced by the Minns Labor Government to reduce gambling harm. The reforms include:

• reducing the statewide gaming machine entitlement cap in June 2023

• banning political donations from clubs with electronic gaming machines on 1 July 2023

• reducing the cash input limit on new gaming machines from $5000 to $500 on 1 July 2023

• banning all external gambling signage in venues on 1 September 2023

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• banning the placement of any signage or advertising relating to gaming machines either on, or visible from an ATM or EFTPOS terminal with cash withdrawal facilities and introduced Responsible Gambling Officers for venues with more than 20 machine entitlements, on 1 July 2024

• requiring Automatic Teller Machines (ATMs) or EFTPOS terminals that allow cash withdrawals to be placed at least 5m from the entry to a gaming room and not be visible from any machine or entry to a gaming room, from 1 January 2025

• established an Independent Panel to conduct a trial of cashless gaming in pubs and clubs throughout 2024

• committing $100 million to harm minimisation – investing in research, treatment, services and reform.

Minister for Transport Jo Haylen said: “Gambling advertising has been a common sight on our public transport for a couple of years now, and I’m pleased our Government is taking action to remove it. Parents are rightly worried about the impact it has on their kids, so its not something that we think that needs to be on our transport network.

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“With over 3500 buses, close to 800 advertising assets at train stations, as well as advertising on light rail and trains, Transport’s advertising contracts are vast. Because of the scale it will take some time to implement this change, but we will be working closely with our contract partners over the next 12 months to get this done.”

Minister for Gaming and Racing David Harris said: “Removing gambling advertising from public transport is another demonstration of the Minns Labor Government’s commitment to reducing gambling harm in NSW.

“This move will reduce the public’s exposure to gambling advertising and builds on the suite of reforms the government has introduced over the past 20 months to reduce harmful impacts of gambling.”

The post NSW: Minns Government Moves to Ban Gambling Advertising from Trains appeared first on European Gaming Industry News.

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Australia

VGCCC: Bookmaker Fined for Customer Safety Breaches

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Registered online bookmaker VicBet has been fined $130,000 for 2 breaches of its customer care obligations.

Announcing the fine, Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt AM reminded the gambling industry of the potential for people to experience severe harm when rules are not followed.

“Breaches can have serious consequences, not only in terms of punitive actions against the companies we catch out, but for people whose lives are affected by this behaviour,” Ms Kimmitt said.

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“It is an egregious betrayal of trust, for example, to continue to send marketing materials to a person who has self-excluded from a gambling venue or closed a betting account.”

The VGCCC’s investigations into complaints about VicBet found the bookmaker had:

• offered and provided a $1,800 bonus bet to a customer after they asked for their betting account to be closed in September 2022. VicBet was fined $50,000.

• repeatedly sent gambling promotional material to a customer after they permanently self-excluded from VicBet in March 2020. The penalty was an $80,000 fine.

It is an offence for a bookmaker to encourage or offer any credit, voucher or reward, or other benefit to induce an account holder to keep an account open after they have requested its closure.

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Similarly, sending correspondence or promotional material to customers who have self-excluded contravenes the Victorian Bookmakers’ Association Code of Conduct.

“On these occasions, VicBet failed to live up to both its legal and social licences to operate, which include minimising the risk of harm to customers,” Ms Kimmitt said.

“Industry must respect the wishes of people who decide to have a break from, or quit, gambling. This means taking all reasonable steps to enforce harm prevention initiatives that customers commit themselves to, such as self-exclusion programs.”

VicBet was given the opportunity to “show cause” as to why disciplinary action should not be taken. Submissions from its legal representative were considered prior to a determination being made.

The post VGCCC: Bookmaker Fined for Customer Safety Breaches appeared first on European Gaming Industry News.

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Australia

Michael Fitzsimons Joins Tabcorp as Chief Wagering Officer

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Tabcorp Holdings Limited has appointed Michael Fitzsimons as its Chief Wagering Officer.

Mr Fitzsimons will oversee all core wagering functions including digital, retail, tote, trading, product and marketing. The position is part of the company’s evolved Executive Leadership Team structure, which was announced in December last year. The simpler structure will ensure all wagering functions will fall under one executive.

Mr Fitzsimons has over 20 years of global sports betting experience across the EU, US and Asia. He is currently Executive Director Wagering at Hong Kong Jockey Club (HKJC) where he leads strategy, trading, marketing, data and product development for fixed odds, parimutuel and lottery products.

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His current role encompasses oversight of one of the world’s largest totes, including the World Pool platform, along with Risk Management of China Sports Lottery’s 120,000 betting branches. Prior to his role at the HKJC, Mr Fitzsimons was Director of International Trading and Operations at The Stars Group. During this time, he successfully launched the PokerStars Sportsbook and relaunched SkyBet in Germany and Italy. Mr Fitzsimons is on the executive of the World Tote Association (WoTA).

Tabcorp Managing Director and Chief Executive Officer elect, Gillon McLachlan, said: “Michael Fitzsimons is one of the world’s most sought after wagering executives and brings extensive global sports betting experience to Tabcorp. He has a deep knowledge of international sports betting, trading and tote. Michael is a rare find – he knows digital and retail wagering and is one of the few people in the world who can connect both to grow a wagering product.

“The creation of a Chief Wagering Officer is a significant uplift in wagering capability within our executive team. The simpler vertical structure brings all levers that grow wagering together under one executive to ensure first class execution.”

Mr Fitzsimons is expected to commence in the first half of 2025. His appointment is subject to relevant regulatory and probity approvals.

The post Michael Fitzsimons Joins Tabcorp as Chief Wagering Officer appeared first on European Gaming Industry News.

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