VCGLR issues notice to Crown Resorts over junkets

Victoria has issued James Packer’s Crown casino operation a please-explain notice over the same probity questions that NSW has been asking.

The entrance to the Crown Casino lies empty in Melbourne on August 19, 2020 as its parent company Crown Resorts recorded a full-year net profit fall of 80 percent due to a COVID-19 coronavirus forced closure. (Photo by William WEST / AFP)

Crown Resorts entanglements with government regulators have worsened with the Victorian government now issuing a “show cause” notice with the casino company just at the same time as its directors are being hauled before an inquiry in New South Wales over the operations of the business and its links to dubious junket operators.

Just as Crown director and former AFL boss Andrew Demetriou was called to give evidence before the Independent Liquor and Gaming Authority in NSW, Crown issued a statement to the ASX that it had been delivered a “show cause” notice from the Victorian regulator.

“Crown Resorts confirms that Crown Melbourne Limited (Crown Melbourne) has received a Show Cause Notice from the Victorian Commission for Gambling and Liquor Regulation (VCGLR) relating to Crown Melbourne’s compliance with its Internal Control Statement for junket operations (ICS) as required under the Casino Control Act 1991 (Vic),’’ the ASX statement said.

The ASX statement said the notice requires Crown Melbourne to show cause why disciplinary action should not be taken in relation to an alleged noncompliance with the ICS. “Crown Melbourne will respond to the Show Cause Notice and fully co-operate with the VCGLR in relation to this process,’’ Crown Resorts said.

“As previously announced, Crown has suspended all activity with junket operators until 30 June 2021 while it undertakes a comprehensive review of its processes related to junket operators.”

A spokeswoman for Crown declined to comment when called.

The please-explain from the Victorian gaming regulator is also linked to the casino’s relationship with junket operators in Asia that have been the focus of the current NSW inquiry into alleged money laundering and other criminal activities conducted by some junket operators sending patrons to Crown casinos in Australia.

The NSW inquiry has heard from Crown major shareholder James Packer and a number of former and current directors over the casino company’s relationship with junket operators, including one of the world’s biggest recruiters of Chinese high-roller gamblers Suncity which has alleged links to organised crime.

In a statement to the ASX Crown Resorts said it had received a note from the Victorian regulator.

Mr Demetriou is giving evidence to the NSW inquiry Monday morning.

Current Crown chairman and former Federal minister Helen Coonan is to give evidence before the NSW inquiry this week.