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AAP
AAP
National
Benita Kolovos

Victoria's Crown royal commission begins

Victoria's royal commission into Crown is yet to hear from the company regarding potential breaches of its contractual obligations in the state.

The inquiry's chair, former Federal Court judge Raymond Finkelstein QC, told an opening hearing on Wednesday he had written two letters to Crown Resorts and its subsidiaries ahead of proceedings.

In the first, Mr Finkelstein asked whether the company accepted the findings of a NSW judicial inquiry, released in February this year.

That inquiry, headed by former Supreme Court judge Patricia Bergin, found Crown was unfit to run a casino at its newly built Barangaroo complex in Sydney.

It also found the company facilitated money laundering at its Melbourne and Perth casinos, dealt with junket operators it knew were involved in organised crime and put staff in China in danger of being detained.

Mr Finkelstein said Crown did not accept the findings in regards to the "deliberateness or wilfulness of the conduct".

But the company conceded it was "open to Commissioner Bergin to conclude that Crown Resorts was not a suitable person to have been associated with Crown Sydney".

In the second letter, Mr Finkelstein asked whether Crown Melbourne had breached any of its obligations, "whether imposed by statute, regulation, contract or otherwise".

He is yet to have a reply from the company.

"The response to the second letter will tell me a number of things," Mr Finklestein said.

"The first and most crucial is that I can find out if there have been any breaches, whether the Crown companies have systems in place that enable them to identify those breaches.

"If they don't have the required systems that may have consequences."

Mr Finkelstein said he did not want the royal commission to overlap with Ms Bergin's inquiry.

He said he will investigate whether money laundering is still taking place at Crown's Melbourne casino and whether the company has breached Victorian legislation and regulations, as well as any contractual obligations.

His inquiry will also look at how the company deals with gambling addiction.

Mr Finkelstein said more than 300,000 Australians are problem gamblers, accounting for a third of the total gambling expenditure - about $3.5 billion annually.

He also noted casinos attract "significant criminal activity", including petty crime within the venue, street crime outside, money laundering and the "infiltration of organised crime syndicates".

But he also noted gambling's "significant benefits", including that it employs people and accounts for about 12 per cent of tax revenue in Victoria.

Public hearings are expected to begin within weeks, with Mr Finkelstein required to report back to the government with recommendations by August 1.

Premier Daniel Andrews has indicated he is prepared to tear up Crown's casino licence if it is recommended.

While the inquiry was expected to cost $7 million, it was revealed on Wednesday up to $10 million has been allocated by the state government.

The WA government has announced its own inquiry into the allegations relating to the Perth casino.

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