Victoria’s casino watchdog hardens stance with new directives on Melbourne transformation plan

Since April 2024, the Victorian Gambling and Casino Control Commission (VGCCC) has issued three written directions to the operator of the Melbourne casino to enforce its Melbourne Transformation Plan. The plan, which runs until 31 December 2026, sets out transformation objectives, priorities, outcomes, milestones and timelines over a three‑year period.

The VGCCC describes the plan as “critical” to the casino’s ongoing reform and flags it will sit at the centre of the next Periodic Investigation into the Casino Operator, scheduled for 2027. That investigation will again test the operator’s suitability to hold Victoria’s only casino licence, which is currently in force until November 2050.

These directions follow the Commission’s March 2024 suitability decision, in which it confirmed the operator was fit to continue running the Melbourne casino but signalled that the transformation process was far from complete. The Commission has provided a detailed statement of expectations, requiring the casino to operate beyond strict legal obligations by acting with integrity, being transparent and accountable, and upholding the spirit as well as the letter of the law.

The operator must publish a Public Status Report twice a year on its progress against the Melbourne Transformation Plan, providing an additional layer of public accountability. The VGCCC has indicated that it will carefully monitor these reports as part of its broader oversight of the casino’s reform program.

The new directions are being enforced in an environment where the VGCCC’s powers over the Melbourne casino have been significantly expanded since the 2021 Royal Commission. Legislative changes have lifted the maximum fine the regulator can impose on the casino operator from $1 million to $100 million per breach, and given the Commission the ability to issue mandatory directions and accept enforceable undertakings.

A dedicated Casino Division, established in July 2022, now oversees the casino’s operations. That division includes around 20 on‑site inspectors monitoring the gaming floor and CCTV network 24 hours a day, seven days a week. It assesses and licenses casino special employees, approves games, rules, equipment and processes, and investigates suspected breaches that could lead to enforcement action.

The VGCCC outlines a regulatory approach that is heavily data‑driven and intelligence‑led. It analyses gambling expenditure, such as daily poker machine and casino games turnover, and transactional data including suspicious matter reports, large cash transactions and international funds transfers. These data points are used to identify irregularities that may signal money laundering or other criminal activity, prompting further investigations.

Harm minimisation is embedded in the regulator’s expectations for the transformation plan. Measures include mandatory carded play and pre‑commitment for gaming machines, mandatory breaks in play after three and six hours, removal of continuous play functions and a reduced spin rate on poker machines. The regulator also restricts marketing programs that could target vulnerable patrons, and trains its staff to identify signs of gambling distress, supported by expanded CCTV‑based surveillance.

For people who gamble at the Melbourne casino, the tightened oversight means more structured monitoring of gambling behaviour, stronger checks on high‑risk activity and a clearer framework for intervention when harm is suspected. For the operator, the three written directions and the three‑year transformation timeline set out a defined path where sustained cultural change and compliance performance will be tested again in 2027 under materially tougher regulatory powers.

The VGCCC links the transformation directives directly to its requirement that the Melbourne casino remain free from criminal influence or exploitation. Since the Royal Commission, the regulator has expanded its monitoring and surveillance capabilities across the casino site and strengthened information‑sharing with agencies including Victoria Police, AUSTRAC and the Australian Federal Police.

Technology is used to capture and analyse ‘red flags’ for both gambling harm and financial crime. The Commission also runs a tip‑off program that allows the public to report suspected criminal activity anonymously. High‑risk customer segments receive additional scrutiny, with so‑called ‘junket’ programs banned and any ‘premium player’ arrangements tightly controlled and monitored.

The VGCCC states that the casino operator must actively prevent criminal activity and act decisively on any signs of money laundering. It conducts its own intelligence, open‑source and international checks on premium players to assess their general reputation for character, honesty and integrity, and to validate enhanced customer due diligence conducted by the operator.

Looking ahead to the 2027 Periodic Investigation, the Commission has made clear that the operator’s delivery of the Melbourne Transformation Plan will be central to any future decision about suitability and the public interest in the licence continuing. In practice, that means the three written directions issued since April 2024 are not just procedural steps, but formal benchmarks that will be used to judge whether the casino has fully implemented the cultural and operational changes demanded in the post‑Royal Commission era.