According to accusations by former technicians at Crown's casino in Melbourne

James Packer's Crown Resorts might face disciplinary measures

Disciplinary action against Crown could include the cancellation, suspension or variation of its casino licence, the imposition of a fine or a letter of censure, according to the VCGLR.
2018-03-05
Reading time 2:37 min
Disciplinary action against Crown, for allegedly tampering with poker machines, could include the cancellation, suspension or variation of its casino licence, the imposition of a fine or a letter of censure, according to the Victorian Commission for Gambling and Liquor Regulation.

The industry is pondering whether fines could go the way of James Packer's Crown Resorts, as Victoria's gambling authority launches disciplinary proceeedings against the operator for allegedly tampering with poker machines. Crown might even have its flagship casino licence stripped or suspended. 

In 2017, independent federal MP Andrew Wilkie received information from former gaming-floor technicians at Crown's casino in Melbourne's Southbank, claiming they had been ordered to make secret alterations to boost losses on poker machines.

The Victorian Commission for Gambling and Liquor Regulation, which investigated the claims, revealed on Monday it had now launched proceedings against Crown on one of the key allegations - that Crown had "blanked" out the buttons for certain low-betting options on poker machines.

"The commission has commenced disciplinary proceedings against the casino operator," a VCGLR spokeswoman said. "These proceedings relate to the use of blanking of buttons on certain electronic gaming machines on the casino floor."

Disciplinary action against Crown could include the cancellation, suspension or variation of its casino licence, the imposition of a fine or a letter of censure, according to the VCGLR.
In a 30-minute video tabled in federal Parliament last October, Mr Wilkie's anonymous whistleblowers alleged that they had been instructed to remove three out of the five betting-line options on some poker machines.

"They got rid of the five, 10, 20 [options], so your options were one - which is betting two cents on the middle line - or 40, which is all the combinations," one whistleblower said.
The ASX-listed Crown told the stock market on Monday it had been informed of the VCGLR's disciplinary action.

But Crown said that the alterations were part of a three-week "trial" - on 17 out of the casino's 2628 poker machines - and insisted that it did not require prior approval.
"In the view of the commission, a trial conducted by Crown Melbourne involving the use of blanking buttons on a limited number of electronic gaming machines ... may have breached the Gambling Regulation Act," the company said. "Crown Melbourne has recently provided a detailed submission of its position to the commission."

Mr Wilkie on Monday welcomed the revelations that the VCGLR believed Crown may have acted illegally. He said the regulator's action "makes a mockery" of Crown's outright rejection of the allegations when he raised them in October. "The casino obviously has a case to answer about the blanking of buttons, and I'm sure that the truth will come out when the commission finalises its inquiries," he said. "Both parties are telling different stories, and clearly only one can be right."

Other tampering allegations raised by the anonymous ex-Crown employees in Mr Wilkie's 30-minute video included that they had been ordered to use knives to "shave down" betting buttons on poker machine so patrons were able jam them in and gamble non-stop. They also said they had been told to undermine government efforts to track money-laundering by using different player ID cards when processing large transactions of more than $10,000, and turn a blind eye to drug use, domestic violence and obvious signs of problematic pokies gambling.
The VCGLR on Monday said it had investigated these other claims tabled and determined it did not have grounds for further action.

The regulator's action against Crown comes as the casino giant's biggest shareholder, billionaire James Packer, prepares to sell potentially nearly $200 million of shares in the company. Mr Packer, who is also a Crown Resorts director, says he intends to keep his interest in the company at about 47 per cent. The sell-off coincides with Crown's launch of a buyback of 23.9 million shares that could be worth up to $390 million.

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