SYDNEY, March 26 (Reuters) - Blackstone-owned

Crown Resorts can keep its licence to operate its flagship

Melbourne casino, a gambling regulator said on Tuesday, more

than two years after the casino was put under government

supervision for breaking anti-money laundering laws.

The Victorian Gambling and Casino Control Commission (VGCCC)

said it was in the public interest that Melbourne casino licence

of the Crown Resorts remained in force.

"Today, the commission is satisfied that the systemic

failings of Crown Melbourne are a thing of the past," VGCCC

Chair Fran Thorn said during a media briefing.

"But ongoing suitability will be significantly demonstrated

by how Crown responds to instances of operational failure, not

by their total absence."

Thorn said she was "clearly satisfied" the Melbourne casino

can keep operating after findings of the VGCCC and the special

manager, and Crown's commitment to its transformation plan.

In a statement, Crown Resorts acknowledged the regulator's

requirement, and said it would continue to work constructively

to ensure ongoing compliance with broader industry regulations.

"Over 10,000 pages of documentation have been submitted and

770 remediation activities have been delivered to our state

regulators, fundamentally rebuilding our organisation from the

inside out," Crown CEO Ciaran Carruthers said.

Crown Resorts last year agreed to pay a A$450 million ($294

million) fine for breaking anti-money laundering laws, after

allegations over governance sparked inquiries in states in which

it operated, plus a probe by the financial crime watchdog.

It was allowed to continue to take bets in Victoria state

after authorities weighed the economic impact of cancelling the

company's licence. Crown Resorts, which was taken private in

2022 by Blackstone for A$8.9 billion, is Victoria's biggest

single-site private sector employer, with about 11,500 staff.

State governments ordered inquiries into Crown Resorts after

media reports in 2019 accused it of knowingly dealing with

foreign tour operators with ties to organised crime and turning

a blind eye to money laundering.

($1 = 1.5295 Australian dollars)