Crown casino denies rigging poker machines

Crown casino will be investigated following explosive allegations staff illegally tampered with poker machines.

Crown casino in Melbourne. Picture: AFP

Crown casino will be invest­igated by regulators following explosive allegations staff ­illegally tampered with poker machines to increase debt losses and attempted to avoid money-laundering laws.

James Packer’s Crown ­Resorts yesterday demanded Andrew Wilkie “immediately” hand over information about a series of allegations after the anti-gambling independent MP used parliamentary privilege to disclose video evidence from three male anonymous whistleblowers claiming to be former Crown employees.

The allegations, which were rejected by the casino operator and have been aired days before the company’s annual general meeting, sparked a negative ­reaction on the stockmarket, with Crown shedding $350 million from its market value as its shares fell 4.3 per cent to $11.24.

The former employees, whose identities Mr Wilkie did not reveal, alleged staff had been instructed to “shave down” buttons on poker machines so ­patrons could fit a “pick” ­between them to allow continuous play, which is banned.

Other allegations included that staff were asked to use different player ID cards for the same punter to avoid reporting to Austrac transactions worth $10,000 or more; that lower debt options were disabled; and that the casino turned a blind eye to domestic violence among “international” patrons and the use of marijuana and cocaine in the VIP rooms.

 

The ex-employees, who mentioned in the video they had worked at Crown Melbourne for several years, also claimed Victoria’s gambling regulator did nothing to stop the alleged ­criminal misconduct and in some cases was complicit in covering it up. “They were definitely abiding by what was going on, almost to the point of aiding and abetting,” one former employee said of the Victorian Commission for Gambling and Liquor Regulation.

“They’re not knowledgeable technically either. So it was hard for them to gather the concept of certain issues.

“And so sometimes it was just easier for them to do nothing.”

An industry source confirmed last night Crown believes the Electrical Trades Union is driving the accusations following a recent industrial dispute over workplace issues.

As Senate crossbenchers moved to establish an inquiry into the industry, Crown issued a statement to the Australian ­Securities Exchange rejecting Mr Wilkie’s allegations.

Mr Wilkie, who admitted he had not gone to authorities before airing the claims, said the allegations were “quite chilling” and among the most serious put to him during his seven-year parliamentary career, as he referred the matters to Victoria Police and the Australian Federal Police.

He would not “encourage” the whistleblowers to talk to police, saying it was up to them and any other Crown employees to speak out publicly.

“If these allegations are true then Crown would be ­facilitating money laundering for any ­number of nefarious reasons like tax fraud, drug running and even terrorism,” Mr Wilkie told ­parliament.

The ex-Crown employees also alleged “product analysts” would deliberately place machines in the path of popular or high-return machines because “science shows them that (patrons) will put money in the new machines on the way to find that (favourite) machine”.

The Greens will join forces with the Nick Xenophon Team and independent Jacqui Lambie today to move in the upper house for an inquiry into the casino industry.

Greens leader Richard Di Natale called on Crown to stop operating its poker machines “until a full and independent audit is undertaken”.

The Australian understands Labor and the government will not support the motion because the matter was a state issue.

Austrac and the VCGLR said they would investigate the “extremely serious” allegations.

Victorian Gaming Minister Marlene Kairouz called for any person with information to assist the commission’s review.

The allegations against Crown came shortly after the last of its employees charged by Chinese authorities for gambling-­related offences were released from detention.

The 16 Crown staff detained had all pleaded guilty to gambling crimes and were fined a total of $1.67 million.

China’s case against Crown employees resulted in jail sentences of nine or 10 months and ­involved three Australians, including Jason O’Connor, the head of the company’s international VIP casino business.

Allegations about money laundering follow other cases involving Australia’s big companies.