Whistleblowers expose Crown Casino

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Crown Casino allegedly tampered with poker machines to increase gambling losses. Picture: AFPSource:AFP

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WHISTLEBLOWERS have alleged Crown Casino deliberately tampered with pokie machines to increase gambling losses for users and overlooked illegal drug use and domestic violence.

Independent MP Andrew Wilkie tabled the allegations of criminal misconduct in federal Parliament today.

“Although the allegations focus on Crown in Melbourne, they could also suggest a broader pattern of behaviour in the poker machine industry which would obviously have grave implications for people right around Australia,” Mr Wilkie said.

Independent Member for Denison Andrew Wilkie tabled the claims in Parliament. Picture: AAPSource:AAP

“I call on the Federal and Victorian governments to ensure the allegations are investigated thoroughly. The truth will not be uncovered without a parliamentary inquiry, as well as investigations by law enforcement and regulatory agencies.”

Crown has rejected the explosive allegations.

A brief statement from Crown on allegations of turning a blind eye to drug use, money laundering and fiddling with pokies @dailytelegraphpic.twitter.com/FGL2drlG5n

— Kylar Loussikian (@kloussikian) October 18, 2017

“Crown Resorts Limited rejects the allegations made today under parliamentary privilege by Mr Andrew Wilkie MP, as reported in the media, concerning the improper manipulation of poker machines and other illegal or improper conduct at Crown Casino in Melbourne,” a statement from the company read.

“Crown calls on Mr Wilkie to immediately provide to the relevant authorities all information relating to the matters alleged.”

Crown casino staff accused of poker machine tampering and more

Mr Wilkie tabled the allegations, from three former staff members, in the Federation Chamber this morning, in what is believed to be the first instance of video evidence being tabled in Parliament.

The interviews were recorded as part of Mr Wilkie’s PokieLeaks campaign, which he launched with South Australian Senator Nick Xenophon to “expose the dirty secrets” of the poker machine industry.

The video footage includes allegations that Crown Casino engaged in “illegal machine tampering”, including the disabling of lower bet options and modifying of buttons to allow prohibited continuous play, Mr Wilkie said.

Mr Wilkie alleged Crown Casino of “software manipulation to increase gambler losses even further”. Picture: AAPSource:AAP

“Moreover there’s software manipulation to increase gambler losses even further, in particular on weekends when the number of naive first time and casual users is obviously much greater,” he said.

In the video evidence, which blurred the three men and altered their voices, the former staff claimed they were told to shave down buttons to allow gamblers to play continuously or remove wires from buttons to reduce mid-range bet options on pokies.

They also alleged that crown management did not report a suicide-attempt in front of staff on the casino floor, but escorted the man off the premises after he was treated.

In another instance, the trio alleged management regularly did not report domestic violence incidents by international patrons against their wives.

Instead the married couple were allegedly put in separate rooms for a night. The anonymous men also alleged management turned a blind eye to illegal drug use, often marijuana, in certain gambling rooms.

Nick Xenophon helped initiate the Pokie Leaks campaign. Picture: Tricia WatkinsonSource:News Corp Australia

Mr Wilkie said the whistleblowers had alleged the Victorian Commission for Gambling and Liquor Regulation had done nothing to stop the “shocking criminal conduct”.

The whistleblowers also alleged that “in some cases” the commission was complicit in covering it up, he said.

“Regrettably, the alleged misconduct at Crown is not limited to poker machines,” Mr Wilkie said.

“The whistleblowers also allege that the Casino avoids AUSTRAC scrutiny of individuals involved in transactions of over $10,000 by sometimes tolerating or even encouraging the misuse of identity documents,” he said.

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

“Other examples of alleged misconduct at Crown include sanctioned use of illicit drugs at the casino, the practice of covering up domestic violence and management’s disinterest in staff flaunting the law prohibiting them gambling at the venue.”

Mr Wilkie said he had personally confirmed the identity of the whistleblowers, although it had been obscured in the footage.

He called for a parliamentary inquiry and a police investigation as “many laws have possibly been broken”.

Greens Senator Larissa Waters also helped start the campaign. Picture: AAPSource:AAP

The three whistleblowers have not yet gone to police.

“They are understandably quite anxious about the risk they are taking,” Mr Wilkie told reporters in Canberra.

“They thought the safest way to ventilate their concerns was to come to me in the first instance, with the protection of the parliament to allow me to get those allegations out.

“The challenge is now for the law enforcement and regulatory agencies to conduct their own inquiries.”

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Mr Wilkie, who spoke out against Australia entering the Iraq war after he resigned from a government role in the Office of National Assessments in 2003, said he would not personally encourage the men to speak to the police.

“I came into public life as a high-profile whistle blower, I know how difficult and dangerous it can be,” he said. “Given what I went through, I’m very reluctant to encourage them to go beyond where we’ve gone. But they’ll make their own decisions.”

Victorian Greens gambling spokesperson Colleen Hartland says Crown Casino’s pokie machines need to be immediately suspended from trade while an independent audit is undertaken, following the allegations.

“These are serious offences and the state government needs to act,” Ms Hartland said.

“Crown cannot be allowed to operate pokie machines until an independent audit has been completed.

“We know Crown Casino donated to Dan Andrews before the last election, but he can’t let them get away with this,” she said.

Victoria’s gaming watchdog has vowed to thoroughly investigate the claims made by Crown whistleblowers this morning.

In a statement it said it was currently conducting a regular review into Crown’s licence.

It said it was aware of the allegation made by independent senator Andrew Wilkie.

The Victorian for Commission for Gambling and Liquor Regulation (VCGLR) is aware of the allegations made by independent MP Andrew Wilkie and took the claims seriously.

“The VCGLR maintains constant oversight of the Melbourne Casino and has taken active steps over the past 12 months to improve our level of supervision of the Casino. This includes establishing a specialist dedicated Casino team.”

“We undertake regular inspections and audits of the Casino each year.”

“ We continue to work closely with other law enforcement agencies, including AUSTRAC and Victoria Police, to ensure the purposes of the Casino Control Act 1991 are met.

Special Minister of State Gavin Jennings declined to comment on whether the casino’s licence could be suspended and said the allegations must be “rigorously tested”.

Communications Minister Mitch Fifield says the federal government is unlikely to hold a parliamentary investigation into the allegations. Picture: AAPSource:AAP

“We accept that we should leave no stone unturned to get to the bottom of this matter and take the appropriate action.”

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“What I do know is the message has gone out very clearly to the regulators, gone out immediately and those meetings will be taking place very shortly to actually make sure that all the relevant issues are considered.”

Mr Jennings said Gaming Minister Marlene Kairouz was working to gain an in-depth understanding of the issue and would address the media when she was ready.

The federal government is unlikely to hold a parliamentary investigation.

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Communications Minister Mitch Fifield told Sky News “regulation of poker machines is something that falls squarely within the State jurisdiction”.

“While I have responsibility for online gaming, those physical poker machines in venues are really matters for the State Gaming Minister in Victoria,” he said.

Ms Kairouz met with the Victorian Commission for Gambling and Liquor Regulation CEO Catherine Myers and chair Ross Kennedy and was confident they would investigate the matter thoroughly.

“I take these matters extremely seriously, that’s why have asked the VCGLR to conduct a thorough and proper review and investigation into the allegations made today. I also ask for any members of the public with any information to come forward and assist the commission in anyway that they can.”

Ms Kairouz admitted whistleblowers’ claims made against the regulator were serious and said “all allegations” would be looked at but when if Victoria Police would be brought in, Ms Kairouz said the commission had the appropriate powers to oversee the matter.

The minister also denied the government’s gaming revenue stream from pokie machines was relevant to the issue.