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Billionaire businessman and investor James Packer has this week topped off a decade of misfortunes with a crushing blow to what was once 'the jewel in his crown.'...
Billionaire businessman and investor James Packer has this week topped off a decade of misfortunes with a crushing blow to what was once 'the jewel in his crown.'
Casino operator Crown Resorts faces yet another inquiry into allegations of money laundering, this time in Western Australia. Picture: Lisa Maree Williams/Getty ImagesSource:Getty Images
Casino operator Crown Resorts faces yet another inquiry into allegations of money laundering, with the West Australian gaming regulator launching a probe with the powers of a royal commission.
The Gaming and Wagering Commission (GWC) of WA held a crisis meeting on Tuesday after the State Solicitor’s Office urgently looked into the findings of the NSW Independent Liquor and Gaming Authority inquiry into the scandal, which first emerged in media reports in 2019.
The GWC seeks to establish if Crown Perth is suitable to retain its gaming licence for the Burswood venue in light of what the NSW investigation uncovered.
The near year-long hearings looked into massive amounts of money being funnelled through Crown’s Perth and Melbourne casinos by Asian high-roller junkets linked to organised crime.
It viewed secretly captured — but not internally recorded — and now notorious footage of a man unloading huge wads of cash from a blue cooler bag inside a room at the Melbourne venue dedicated to Macau’s biggest junket operator Suncity.
Crown Perth in Burswood on the first day of COVID-19 lockdown.Source:News Corp Australia
Crown made a last-minute admission at the inquiry that “cuckoo smurfing” — a form of money laundering where large transactions are split into small transactions in a bid to disguise them — had been identified in two bank accounts.
The NSW regulator found Crown’s board and management had many failings and biggest shareholder James Packer – who the inquiry heard was the driving force in the push to bring in more junkets – had a powerful influence on the company with “disastrous” consequences.
It determined Crown was not suitable to retain the gambling licence for its new, yet-to-open $2.2bn casino at Barangaroo in Sydney, and the company is trying to get it back by gutting the board line-up, including chief executive Ken Barton.
“The GWC acknowledges the seriousness of the findings and has been working cooperatively with the Bergin inquiry since it came to light,” the WA regulator said in a statement on Monday.
Billionaire James Packer fronted the inquiry, admitting ‘shameful’ and ‘disgraceful’ threats against a businessman.Source:Supplied
WA Premier Mark McGowan said the expected four-month inquiry would examine what was needed to ensure Crown Perth was “squeaky clean”.
“This is important that we get to the bottom of all of these issues and whether there are any WA specific issues, and what should be done in terms of making sure there is no illegality and no unlawfulness at our casino,” he told reporters on Wednesday.
“We just want to take leadership here ... we will ensure that whatever is required to be done is done.”
Mr McGowan said Crown Perth would be allowed to operate while the inquiry was held.
“If we take the licence away, 5500 people lose their jobs overnight and we’re not going to do that,” he said.
“We’ll leave no stone unturned to make sure that there is no unlawfulness or no illegality at the casino.”
WA Gaming and Racing Minister Paul Papalia agreed it would be pointless to suspend Crown Perth’s licence.
“There is no imminent threat from money laundering that were identified in the Bergin inquiry,” he told 6PR radio.
“The mass volume gambling that takes place on the floor of the casino and employs thousands of Western Australians was not identified as a threat and a risk.”
The GWC noted the last junket at Crown Perth was from Macau in March last year — when the NSW inquiry was well underway.
Crown announced in November, days before the probe ended, that it would stop dealing with junket operators, subject to consultation with regulators in Victoria, WA and NSW.
Chair Helen Coonan escaped relatively unscathed from the NSW inquiry, with her reliance on Ken Barton’s advice said to be “misplaced”.Source:The Australian
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Mr Papalia said the inquiry would be undertaken by a retired Supreme Court judge — as was the case with the NSW inquiry — and a very senior retired public servant, whom he described as “very capable individuals”.
“We are determined to ensure that any illegality, any wrongdoing is exposed and prevented from happening in the future and that, of course, we are as transparent as possible,” he told reporters.
“But I will leave it to those inquirers. There are some elements that may not be possible to be public.”
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Crown’s executive chairman Helen Coonan said the company would fully co-operate with the inquiry.
“Crown is determined to play a constructive role with all of its regulators as it works to restore public and regulatory confidence in its operation,” the former Liberal senator said in a statement.
The WA probe is also looking into the effectiveness of the Department of Local Government, Sport and Cultural Industries and the GWC in the discharge of its regulatory responsibilities, including any perceived conflicts of interest.
On Monday, it emerged WA’s chief casino regulator, the department’s deputy director general Michael Connolly, had been chummy with Crown Perth’s legal and compliance team for years – including regular fishing trips.
Mr Connolly stood aside on Friday.
Mr Papalia said he had been advised there were “no compromises” in his relationship with the casino staff.
Crown Sydney at Barangaroo was due to open in December. Picture: Lisa Maree Williams/Getty ImagesSource:Getty Images
The Victorian Commission for Gambling and Liquor Regulation has dramatically brought forward its five-yearly review of Crown Melbourne’s suitability to hold a casino licence, with the Minister expected to receive the findings later this year.
It has a range of other investigations into Crown Melbourne under way, including a probe into Crown Resorts director Harold Mitchell, who was found in 2019 to have breached his director’s duties while on the board of Tennis Australia.
The breaches were in connection with a 2013 decision to award the domestic television broadcast rights for the Australian Open tennis tournament to the Seven Network, earning him a $90,000 penalty in November.
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Separately, Mr Packer told The Weekend Australian it was important his private investment company Consolidated Press Holdings got “out of the way” at Crown “and has no involvement other than as a passive shareholder”.
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“Of course I am sad about the separation, but it’s the right thing to do,” the reclusive billionaire told the masthead.