Loan sharks circle gaming floors at Crown Melbourne

The loan sharks operating on the gaming floors of Crown’s Melbourne casino weren’t on the radar of key executives, royal commission hears.

Loan sharks have been known to prey on problem gamblers at Crown’s Melbourne casino. Picture: David Crosling

Crown Resorts head of responsible gambling has no “visibility” of loan sharks, circling the gaming floors of the company’s flagship Melbourne casino, despite the significant harm they present to problem gamblers, a royal commission has heard.

The Victorian royal commission into the James Packer-backed group also heard on Wednesday that patrons at Crown Melbourne could be gambling for 12 hours or longer before any intervention from staff. Meanwhile, the company is yet to employ an expert to evaluate its responsible gaming practices.

The Victorian royal commission is examining the suitability of Crown to hold Victoria’s sole casino licence, following the explosive revelations from the NSW Bergin inquiry that the company facilitated money laundering at its Melbourne casino.

As part of that examination, counsel assisting the commission is inquiring how Crown treats problem gamblers — which are vulnerable to loan sharks — with the company obliged under law to minimise harm as a condition of holding its licence.

And the last two reviews into Crown Victorian casino licence — completed in 2013 and 2018 — have revealed loan sharking activity at its sprawling Southbank complex.

Counsel assisting the commission Adrian Finanzio SC read to Ms Bauer a section of the fifth review into Crown’s Victorian licence, which highlighted loans sharks as “predatory as they may target problem gamblers who borrow money to gamble”.

“The targeting of problem gamblers is a concern raised by community groups who identified issues about loan sharking and the fear of victims to report the matter to law enforcement agencies due to threats,” Mr Finanzio said.

“Law enforcement agencies indicated to the VCGLR (Victorian Commission for Gambling and Liquor Regulation) that indebtedness to loan sharks can be a pathway to involvement in organised crime. For example, people may be recruited to become involved in drug smuggling or prostitution to pay off their debts to loan sharks.”

Indeed, this is a concern of the Vietnamese Women’s Association, with Mr Finanzio quoting a report from the group stating the following the opening of Crown Melbourne in 1994, the incarceration rate of Vietnamese women rose to two to three times the state average.

“And these women represent approximately 15 to 20 per cent of all female prisoners. The major reason these women were there is because of gambling.

“That‘s something that you’ve been made aware of in the course of your work as the responsible server of gambling? Mr Finanzio asked Crown’s group general manager of responsible gaming Sonja Bauer.

“Yes, I’ve been made aware of it,” she replied.

But Ms Bauer said she consulted with various community groups — including the Vietnamese Women’s Association, which has repeatedly raised concerns about loan sharks — she could not say if the practice remained ongoing.

“I don’t have visibility of loan sharking. The activity is something that is referred to our security services department in terms of the severity of the matter,” Ms Bauer said.

“And I know we view it … (as) unacceptable and illegal and therefore we make every effort to obtain information so that that can be provided to law enforcement agencies as appropriate. So absolutely, in my experience it’s not tolerated.”

Mr Finanzio also suggested to Ms Bauer that “Crown’s systems … were set up to leave” a gambler “to themselves for at least 12 hours, maybe longer,” before any intervention from a responsible gaming advisor (RGA).

Ms Bauer replied that an RGA would only know who long a person has been on site as opposed to how long they have been gambling. “I just want to be clear that 12 hours doesn‘t mean that somebody has been playing for 12 hours,” she said.

But commissioner Ray Finkelstein interrupted saying evidence given to the commission from an RGA showed they “did not draw that distinction”.

“The questions that were put to her and the basis upon which he answers with on,” Mr Finkelstein said.

The commission also heard that Crown was yet to employ a person to complete an evaluation of its responsible gaming practices, despite the sixth review into its Victorian licence recommending the need for self evaluation in 2018.

“Do you agree with me that it‘s a major failing of Crown not to have progressed this faster?” Mr Finanzio asked Ms Bauer.

“It certainly could have been progressed faster. I agree,” Ms Bauer replied.

The royal commission continues on Thursday.