Besieged gambling empire Crown Resorts says it will stop dealing with the junket operators who bring high-rolling overseas punters to its casinos until the operators are licensed by authorities.
Crown made the statement during a break in hearings at an inquiry in New South Wales where it has this week been defending itself against allegations it is not fit to hold the licence for a new casino in Sydney that is due to open within weeks.
The decision came ahead of a make-or-break meeting of the NSW regulator, the Independent Liquor and Gaming Authority (ILGA), which on Wednesday is to consider a submission from Crown for “limited opening of casino operations” as well as the strength of the company’s internal control measures.
The ILGA inquiry has heard allegations that junket operators working in Crown’s casinos have links to organised crime and viewed footage of hundreds of thousands of dollars in cash doled out of shopping bags in a room run by one of the junket operators, Suncity, at the Melbourne casino.
Crown said it had begun a consultation process with regulators in Victoria, which is home to the group’s biggest operating casino, NSW and Western Australia.
“Crown will only recommence dealing with a junket operator if that junket operator is licensed or otherwise approved or sanctioned by all gaming regulators in the states in which Crown operates,” the company said.
Crown had previously said it would suspend junket operations until 30 June next year.
A spokeswoman for the Victorian Commission for Gambling and Liquor Regulation confirmed that it does not currently directly license junket operators. Victorian legislation instead requires Crown to have in place an “approved system of internal controls” governing junket operations.
Any changes to the law were the responsibility of the department of justice and community safety, the regulator’s spokeswoman said. The office of the consumer affairs minister, Melissa Horne, has been contacted for comment.
Last month, the VCGLR issued Crown with a show cause notice, asking the company why it should not be found to be in breach of the law by failing to properly control junket operators.
A spokeswoman for the Victorian government said Crown’s statement on junkets would be considered along with the show cause notice and the final recommendations of the NSW inquiry which are due in February.
An ILGA spokesman said it was “not possible for ILGA or Liquor & Gaming NSW to licence junkets under existing laws and regulations”.
“A licensing regime for junkets could be implemented through amendments to the casino operators’ internal controls or amendments to the Casino Control Act,” he said.
“ILGA has not yet considered any proposal by Crown regarding junkets and Crown has not formally sought ILGA’s views on any proposed changes to regulation of junkets.”
The NSW inquiry, conducted by former state supreme court judge Patricia Bergin for ILGA, on Tuesday heard submissions from counsel for Crown, Neil Young QC, as to why it should not be found unfit to hold the Sydney license.
On Tuesday morning, Young clashed with Bergin over an advertisement last year condemning coverage of Crown by Nine Entertainment.
The ad, which some members of the Crown board have admitted to the inquiry contained inaccuracies, also slammed a junior Crown employee, Jenny Jiang, who was among 19 employees jailed in China for illegally promoting gambling.
It claimed that Jiang’s objectivity was “open to question on the basis that she made an unsuccessful demand for compensation from Crown of over 50 times her final annual salary”.
Young told Bergin she should not conclude any member of the board was not fit to be involved in the casino because they signed the ad.
“Isn’t it the case that it should never have been published in that form?” Bergin asked.
Young said that was “a reasonable and available view” but some members of the board “felt very aggrieved by the falsity of the allegation that was advanced” by Nine in relation to Crown’s treatment of Jiang.
“It’s a blot on the board as I see it, a very bad blot,” Bergin said. “They refer to 50 times her annual salary, as if it was gold-digging.
“I mean she was on $28,000. I mean really. And she ends up in jail.
“And for those directors who didn’t see it as a blot it’s very difficult to understand their judgment.”
ILGA said its meeting on Wednesday would also consider applications from Crown for approval of its VIP membership scheme, the boundary of its gaming area, and liquor licenses.
The regulator will also receive an update on the applications to be approved as suitable people to be associated with a casino submitted by Crown’s chief executive, Ken Barton, and directors Jane Halton and Helen Coonan.