The findings come from the final report of the Perth Casino Royal Commission into Crown Perth, which has been tabled in WA Parliament.
The report also recommends tougher regulation and bigger penalties for breaches.
An independent monitor will be appointed to allow Crown Perth to continue gaming operations and will be in place for two years.
Western Australia’s Minister for Gaming Tony Buti said the final royal commission report into Crown Perth had found “oversight of Crown has become lapse”.
Mr Buti said the WA Government had accepted the recommendations made in the report, which found Crown Resorts to be unsuitable to hold a gaming licence – but would be allowed to continue operating under independent management.
“Importantly, this is about remediation rather than revocation, protecting the jobs of thousands of employees at the casino,” Mr Buti said.
“I want to take this opportunity to acknowledge our casino workers.
“This has understandably been a very difficult time for them.
“They take pride in their work and want to be part of one of our state’s premier reputable service and hospitality venues.”
Mr Buti said of the report’s 59 recommendations, the government will implement some “immediately” and will look to change legislation to enact the rest.
In a notice to shareholders, Crown said it would work with the government to enact the findings of the report.
“Significant progress has been made with Crown’s transformation program, the implementation of company-wide reforms, and establishing the highest standards of governance,” Crown’s Managing Director and CEO Steve McCann said.
“This includes investment in people, systems, processes, culture and a sharp focus on responsible gaming and prevention of financial crime.”
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