Embattled casino giant Crown pays back $61m in underpaid tax, much bigger bill could follow

The casino giant has paid back $61m but a much bigger bill could be looming, as an ousted director says there were no money laundering ‘red flags’.

Crown Resorts has paid back millions of dollars in underpaid tax after Victoria’s royal commission into the casino giant’s money laundering scandal heard the dodgy deductions may have been concealed over many years.

In a statement to the ASX late on Tuesday, Crown said it had paid back the state $61m, including penalty interest of about $24m, after incorrectly deducting bonus rewards provided to pokies punters from the 2012 financial year to date.

Much more could be outstanding, as a full review is yet to be completed, with the investigation previously hearing the underpayment could be up to $272m.

Non-executive director Nigel Morrison revealed last month he and other directors only became aware of the tax issue days earlier at a scheduled board meeting – but chair Helen Coonan told the probe she first heard about it in February.

Mr Morrison said an historical attempt to conceal the underpayments was evidence of a souring relationship between Crown and the Victorian Commission for Gambling and Liquor Regulation (VCGLR).

Crown chair Helen Coonan knew about the tax headache months before directors were informed. Source: Supplied

In the statement, Crown said it continued its review of other aspects of casino tax payments and would update the ASX once the review was complete.

“Crown’s review includes a review of Matchplay, the loyalty promotion pursuant to which Crown Rewards Points are redeemed for credits for use in electronic gaming machines.”

The company said it had been advised the Victorian regulator planned to finalise its own assessment of the underpayments after the royal commission handed down its findings, due mid-October.

Both the Victorian investigation and a separate royal commission in Western Australia have been extended so that serious and complex revelations that have so far emerged can be considered.

Both were sparked by damning findings from last year’s lengthy NSW probe, which uncovered evidence Crown had turned a blind eye to various forms of money laundering by high-roller Asian “junket” tours at its Perth and Melbourne venues.

The Victorian investigation is being overseen by former Federal Court judge Ray Finkelstein. Picture: David Crosling / NCA NewsWire

It resulted in Crown being denied a gaming licence for its new $2.2bn Sydney casino.

The Perth probe, which is currently grilling ousted former director John Poynton, will take into account the outcome of the Victorian royal commission, noting there was “uncertainty about the structure and operations of Crown group in the future”.

During closing submissions in Melbourne last week, counsel assisting Adrian Finanzio said it was open to the commission to strip Crown of its Victorian licence.

And on Monday, the Perth proceedings heard action could be taken by the WA Gaming and Wagering Commission before the state’s final report was handed down in March.

“It will not necessarily await those conclusions if matters disclosed give rise to a need to take action immediately,” GWC lawyer Paul Evans said.

John Poynton, a prominent Perth businessman, says he was forced off Crown’s board by Ms Coonan and the Victorian regulator. Picture: David Crosling / AAP

The proceedings also heard Mr Poynton – who had been a nominee on Crown’s board for biggest shareholder James Packer and reluctantly resigned in March – had been pushed out by both Ms Coonan and the NSW regulator after being “placed under significant pressure … both privately and in media statements”.

Ms Coonan told the ASX the regulator had considered Mr Poynton’s departure appropriate due to his “perceived lack of independence” from Mr Packer, who was the driving force behind the push to secure more lucrative junkets.

It came as the board was being largely gutted as Crown sought to redeem itself.

“The Bergin (last year’s NSW) inquiry made absolutely no adverse findings to his conduct as a director,” the businessman’s lawyer Peter Ward said.

“That resignation should in no way be taken as an admission that he had cause to resign.”

Mr Poynton said in his statement to the royal commission he had hoped to be part of rebuilding Crown and could have made a meaningful contribution, particularly regarding recent takeover offers from Blackstone and Star Entertainment - both of which have so far fizzled.

Mr Poynton had a ‘consultancy agreement’ with reclusive billionaire James Packer and was one of his Crown board nominees.

He said that prior to mid-2019, when the scandal erupted in the media, he did not recall management providing any information that gave him concern about junkets and he therefore didn’t recall any investigations being done locally.

In August 2020 as the NSW inquiry ground on, Mr Poynton said he was supportive of a suggestion by another former lieutenant of Mr Packer on the Crown board, Guy Jalland, that junket relationships be suspended, a plan that was implemented the following month.

By November, Crown had pledged to permanently cease dealing with junket operators.

In his testimony, Mr Poynton repeatedly insisted there had been no “red flags” and replied “no” when asked if he should have done unannounced inspections of the casino, including in the Pearl Room reserved for “VIP” junket gamblers.