The Crown Resorts Ltd (ASX: CWN) is one ASX 200 share is one to watch this morning.
The company is in focus after being handed a fine by the Victorian Commission for Gambling and Liquor Regulation (VCGLR).
Why is the Crown share price on watch?
The announcements came thick and fast last night following the market close. The VCGLR slapped Crown with a $1 million fine, the maximum possible under the Casino Control Act, over its failure to properly vet certain patrons.
The commission found that Crown Melbourne had failed to vet foreign high-rollers and scrutinise junket operators. Junket operators who bring wealthy gamblers from Asia to Australia have been controversial in recent times, with some allegedly having links to organised crime. The VCGLR decision is the latest scandal facing Crown over its risk management and customer-vetting processes.
The Crown share price will be one to watch this morning as investors react to the latest outcome. Crown has previously been found unsuitable to hold a casino licence in NSW and is subject to an ongoing royal commission.
In itself, the $1 million fine is not a major financial burden for the Aussie wagering group. Crown reported a full-year net profit after tax of $79.5 million in FY2020.
However, all eyes will be on the Crown share price in early trade after the state regulator's clear message.
Crown response
The company responded late on Tuesday night with an ASX release of its own.
Crown executive chair Helen Coonan said:
Crown continues to engage with the VCGLR and the Victorian Government in relation to its reform agenda. These reforms and changes to our business are aimed at delivering the highest standards of governance and compliance as we restore public and regulatory confidence in our operations.
As part of this reform agenda, Crown has already ceased dealing with all junket operators.
Foolish takeaway
The Crown share price is one to watch after the Victorian gambling regulator handed down a $1 million fine. It's the latest in an ongoing string of inquiries and scandals miring the Aussie wagering group.
