This article is more than 2 years old

This article is more than 2 years old

James Packer’s Crown Resorts is facing investigations by federal money laundering authorities and casino regulators in at least two states after Wednesday’s explosive allegations of tampering with poker machines and avoiding reporting of cash transactions at Crown’s Melbourne casino.

Anti-gambling campaigner and MP Andrew Wilkie tabled a video in federal parliament containing the serious allegations made by three former Crown employees.

He said he had verified their identities. One appeared to be a poker machine technician, while one other was a gaming room attendant.

They included allegations that Crown:



manipulated machines to change the odds



instructed staff to modify buttons on the machines so they could be wedged with small picks, thereby allowing people to gamble automatically in breach of state regulations



allowed other people’s identity cards to be used to process cash transactions



Crown has rejected the allegations of illegal or improper conduct, but has so far only made a brief statement to the Australian stock exchange.

The poker machine-tampering allegations against Crown in full Read more

A spokeswoman for Austrac, the federal authority responsible for monitoring cash transactions over $10,000, said it was investigating and regarded the allegations as serious.

One whistleblower in the video claimed he had witnessed other people’s identity documents being used to process transactions of gamblers who had issues with being identified to Austrac.

Casinos are high-risk venues for washing the proceeds of crime and authorities rely on management to assist them in identifying suspicious transactions. Compliance is also part of their licence conditions.

The Victorian Commission for Gambling and Liquor Regulation, which has oversight of Crown Melbourne and is currently undertaking the five-year review of the Victorian licence, said it would be investigating immediately.

“We take any claims of this type extremely seriously and they will be thoroughly investigated,” a spokeswoman said. “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.”

But the whistleblowers also accused the commission of being complicit in the breaches, saying it did not make the sort of inquiries needed to uncover the tampering they allege happened.

The commission said it had taken active steps over the past 12 months to improve its level of supervision of the casino. This included establishing a specialist dedicated casino team.



Crown is also facing issues with regulators in New South Wales, where it has been granted a licence for a high-rollers casino to be built at Barangaroo. In Western Australia it has the Crown Burswood casino.

Facebook Twitter Pinterest Independent MP Andrew Wilkie wants the Senate to set up a parliamentary inquiry. Photograph: Mick Tsikas/AAP

Most casino licences require the operator to be fit and proper and so a breach of the Melbourne licence would have ramifications for other states.

The NSW Independent Liquor and Gaming Authority (ILGA) and Liquor and Gaming NSW said they were closely monitoring these allegations against Crown’s Melbourne casino.

“ILGA has ongoing responsibility to consider whether casino operators in NSW and their associates are suitable to hold a licence. Where appropriate, ILGA can issue directions and undertake disciplinary action,” a spokesman said.



“ Liquor & Gaming NSW is also engaging with Crown and its Victorian regulator counterpart in relation to the allegations.”

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The whistleblowers’ identities were heavily disguised and Wilkie – himself a whistleblower some years ago – said it was up to the individuals to decide whether to go to federal and state authorities.

“ I have had several conversations with them,” Wilkie said. “They are so nervous about what they are doing and I will not reveal their identities to anyone. “ I am not going to encourage them to, but it’s up to these three men or any other people who have worked at the casino to go to the authorities.”

Wilkie wants the Senate to set up a parliamentary inquiry so that whistleblowers have the protection of parliamentary privilege when giving evidence.



Crown shares fell by 6% on Wednesday from $11.76 before recovering slightly. But they were down a further 1% on Thursday at $11.08 at mid-morning.

Crown has been contacted for comment.