The gambling regulator of Western Australia issued strict directions to Crown Resorts to ban it from allowing any junket operators to offer their services within its Perth casino after a New South Wales (NSW) Commissioner’s report found considerable governance failures of the gambling company.
The gambling giant has confirmed that it had received the order issued by the Gaming and Wagering Commission of Western Australia under the provisions of the Casino Control Act 1984. Crown Resorts lodged a statement to the Australian Stock Exchange yesterday, saying that the WA watchdog had placed new conditions on its gambling venue in Perth, prohibiting the use of foreign junket operators.
The decision of Western Australia’s gambling regulator is the latest one to hit Crown Resorts that has recently been put under extremely harsh criticism, following the revelations of the NSW probe into the company’s operations. As Casino Guardian previously reported, the investigation and the recently announced findings of Commissioner Bergin’s report revealed, the management of the company was found to have knowingly ignored money laundering activities that had taking place at its venues through the services of its junket partners.
According to reports, so-called casino junkets have been associated with Asian organised crime gangs. On the other hand, junket partners have been used by Crown Resorts as a major generator of revenue as they have been attracting high-roller customers to the Australian casino giant’s venues.
Junket Operators Used by Crown Resorts Associated with Organised Crime
Under the directions issued by the West Australian gambling regulatory body in correspondence with the state casino laws, Crown Perth will no longer be allowed to take part in junket programs or permit some foreign visitors to gamble under special agreements.
After receiving the directions, Crown Resorts made a statement, saying that table games activity with customers who are foreign residents and with whom Crown Perth had an agreement to pay a certain commission, or provide transport, accommodation, entertainment or food and drinks would not be available.
This has been the latest blow suffered by Crown Resorts’ operations in Australia. Most recently, the Government of Victoria has unveiled the establishment of a Royal Commission that will investigate the operations of Crown Melbourne to determine whether the gambling operator is suitable to retain its gambling licence in the state. As the Premier of Victoria, Daniel Andrews, revealed, the Commission’s work would be focused on the company’s suitability to keep its casino permit. He further noted that the goal of the probe is to make sure the state’s interests are protected and to make sure that the company, which is currently the largest single-venue employer in Victoria, is fit to hold its Melbourne casino licence and sticks to the highest standards.
Mr Andrews also shared that Crown Resorts could lose its operating licence in the state in case the Royal Commission decides so.