Melbourne's Crown Casino has received an $80 million fine for allowing the illegal transfer of funds from China.

A royal commission into Crown in Victoria found foreign punters were able to use a China Union Pay (CUP) bank card to access funds to gamble at the casino between 2012 and 2016.

At the time, Chinese nationals were not able to transfer more than $50,000 out of the country per year, but the royal commission found Crown instead issued false receipts for hotel services, which a guest would pay using a China Union Pay bank card in exchange for a voucher that could be used for gambling chips.

The Victorian Gambling and Casino Control Commission (VGCCC) estimated Crown derived revenue of more than $32 million from the arrangement, which violated Chinese laws and Victoria's Casino Control Act.

VGCCC chair Fran Thorn says the fine imposed for the behaviour will strip the casino of the revenue it generated from the illegal conduct.

“Crown's CUP process was a clandestine, deliberate process, which not only breached the Casino Control Act but was also devised to assist patrons to breach China's foreign currency exchange restrictions,” she said. 

“Crown was aware of the risk that the CUP process could be illegal but decided to run that risk.

“In doing so, it showed no regard for upholding its regulatory obligations. Indeed, it went to some lengths to hide what it was doing.”

Crown Casino says it “acknowledges its historic failings”.

“Upon becoming aware of this historical conduct, Crown's board immediately commissioned an independent investigation and shared the findings with the Victorian royal commission, the Victorian Commission for Gambling and Liquor Regulation (the predecessor to the VGCCC) and other regulators,” it said.

“Crown's board and senior management are committed to the delivery of a comprehensive reform and remediation program to ensure Crown delivers a safe and responsible gaming environment and continues to cooperate with the VGCCC on all matters arising from the Victorian Royal Commission Report.”

The VGCCC is considering further disciplinary proceedings against Crown, relating to other findings of the royal commission.