Crown (ASX:CWN) share price slides on news of second $1m fine

Here’s what tipped the Crown share price into the red this afternoon
The post Crown (ASX:CWN) share price slides on news of second $1m fine appeared first on The Motley Fool Australia. –

The Crown Resorts Ltd (ASX: CWN) share price was in the green earlier on Thursday. However, it tumbled after the company announced it’s been hit with another $1 million fine by Victoria’s gambling watchdog.

The Victorian Commission for Gambling and Liquor Regulation (VCGLR) has issued Crown with a second maximum penalty fine. This time, it found the company failed to comply with junket regulations in 2015 and 2016.

The body slapped Crown with a $1 million fine in April for similar behaviour.

At the time of writing, the Crown share price is $11.74, 0.34% lower than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.22%.

Let’s take a closer look at today’s news of Crown’s Melbourne casino.

Crown share price slumps on more historical wrongdoings

The Crown share price is sliding after the VCGLR fined the company for ignoring an order to end its relationship with an individual, non-residential, junket operator and their associates.

VCGLR also found Crown didn’t conduct due diligence on the operator and allowed them to conduct junkets. It also failed to tell the commission before they began their operation.

Notably, had the watchdog made its findings after 1 January 2022 – when the Victorian Gambling and Casino Control Commission is to replace the VCGLR – Crown could be looking at fines of up to $100 million.

The new maximum fine is part of the recently passed Casino and Gambling Legislation Amendment Act 2021.

VCGLR chair Ross Kennedy commented on Crown’s fine, saying:

The amount of this fine reflects the seriousness of this matter, particularly Crown’s conduct in failing to immediately implement the requirements of the commission’s direction to cease a relationship with an unsuitable junket operator.

The VCGLR expects its regulated entities to be proactive in their compliance with regulatory requirements, and firm action will continue to be taken against those that wilfully disregard or disobey directions of the regulator.

The matter wasn’t addressed in the Royal Commissioner’s report, released in October, after which the Crown share price surged. However, VCGLR said it’s “considering Commissioner Finkelstein’s report and will decide what further regulatory action is appropriate in relation to the findings”.

If further action is taken, it could be under the new legislation.

Crown CEO Steve McCann commented:

Crown will consider the findings of the VCGLR carefully, with a view to continuing to advance its reform agenda and taking into consideration all available learnings…

The announcement today from the VCGLR is a reflection of past practices which no longer occur at Crown.

The Crown share price has gained 18% over 2021.

The post Crown (ASX:CWN) share price slides on news of second $1m fine appeared first on The Motley Fool Australia.

Should you invest $1,000 in Crown Resorts right now?

Before you consider Crown Resorts, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Crown Resorts wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Leading fund manager says these blue-chip ASX shares are buys right now

Crown Resorts share price (ASX:CWN) lifts ahead of culture reform

Why this top broker thinks the Crown (ASX:CWN) share price is a buy right now

Crown (ASX:CWN) share price lifts as company opens door to Blackstone. But what about Star?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!