Across Australia, it is illegal for casino operators to lend money to local players, but one of the countries biggest gaming firm has been doing so for years. According to a report in the Brisbane Times, Crown Casino has been getting away with offering credit to players using a loophole. The issue has been brought to light, as Crown Casinos has recently received a 17-year license extension for its Melbourne location.
While the extension will benefit the community by ensuring that more money is returned to public projects and services, many responsible gambling campaigners remain dubious of the deal. According to the Casino Control Act 1991, all Australian residents who gamble at casinos must pay for their chips in advance using cash, cheques or travellers cheques.
They are not allowed to receive credit from casino operators; however, international VIP players are. However, Crown Casinos has applied its own interpretation to the law. As such, local players have been given credit, due to a system that requires them to apply for approval in advance and receive chips. If players lose the money, they must pay it back at the end of the night. If they can’t pay it that night, they will be given seven days.
Another way that Crown has circumvented the law is using a new definition for the term ‘international VIP’ – since these are players who are permitted to receive credit. Credit can be given to players ‘who are not ordinarily residents in Australia’; so, in theory, some local players can receive credit depending on how often they travel.
Crown Casinos has stated that it has not breached the terms of the Casino Control Act 1991, calling the allegations ‘baseless and wrong’. However, the casino will likely have to do more to defend itself since the government has recently entered into a controversial deal that extends its license until 2050.
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