Western Australia bans Crown Resorts from using junkets

The WA government has told Crown Resorts it cannot use junkets to attract VIP players, ahead of an inquiry into the Packer-backed gaming giant.

A general view is seen of Crown Casino in Melbourne, Thursday, April 16, 2020. Crown Resorts has stood down 95 per cent of its workforce - more than 11,500 staff - after coronavirus restrictions affected its casinos in Melbourne and Perth. (AAP Image/Michael Dodge) NO ARCHIVING

West Australian regulators have banned Crown Resorts from using junkets in its Perth casino after a NSW inquiry found they were linked to organised crime and money laundering.

In a release to the ASX on Wednesday, the James Packer backed Crown Resorts said it had been informed by WA’s Gaming and Wagering Commission to cease all participation with junkets – gambling promoters who organise jaunts of VIP clients to casinos – and to stop participating in “premium player activity or privileged player activity.”

The Australian understands that the board of the gaming and wagering commission held a meeting late into the night on Tuesday before issuing the directive.

“In accordance with the directions, Crown Perth will not participate in the conduct of junkets,” Crown Resorts told the ASX.

It added it will also not participate in “table games activity with patrons who are nonresidents of Australia with whom Crown Perth has an arrangement to pay the patron a commission, or provide transport, accommodation, food, drink or entertainment, based on the patron’s turnover or otherwise calculated by reference to such play.”

Crown’s Burswood casino in Perth.

The Gaming and Wagering Commission is yet to comment on the order.

It comes after the board of the committee recommended Western Australia conduct its own inquiry into the suitability of Crown to run its Burswood casino. NSW’s recent inquiry found Crown’s unsuitable to run its new Barangaroo casino.

WA Premier Mark McGowan said the inquiry, which is expected to last four months and be at least partially public, is necessary as his government cannot legally act on the findings of NSW’s inquiry.

“This is important that we get to the bottom of all of these issues and whether there are any Western Australia-specific issues, and what should be done in terms of making sure there’s no illegality and no unlawfulness at our casino,” he said.

A major sticking point of the NSW inquiry was the links between junkets and organised crime, with commissioner Patricia Bergin leaving it to the state’s Independent Liquor and Gaming Authority to determine whether their use should be banned in the state.

Crown Resorts last year pre-emptively determined it would no longer deal with junkets not registered with gaming regulators where it operates.

The issue of junkets will also be a major focus of Victoria’s royal commission into Crown’s suitability to operate its Melbourne casino, which will be headed up by former Federal Court judge Raymond Finkelstein QC.

“Establishing a royal commission will ensure the most appropriate access to information regarding Crown Melbourne’s suitability to hold the casino licence given the Commission’s powers to compel witnesses and documentation,” the Victorian government said on Monday.