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Crown Resorts boss fires up at slot machine tampering allegations, reveals improved VIP

Ben Blaschke by Ben Blaschke
Thu 26 Oct 2017 at 20:36
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Crown Resorts Chairman John Alexander has used the company’s annual general meeting to fire back at an Australian politician who used parliamentary privilege to accuse the local casino giant of tampering with slot machines.

In a lengthy address, Alexander said that Crown “emphatically rejects” the allegations, in which Andrew Wilkie MP cited four former Crown employees as the anonymous sources of accusations.

“I am angered and disappointed by the outrageous and unfounded allegations levelled at us by Mr Wilkie, which unfairly smeared Crown by asserting that we have acted improperly in relation to our gaming machines and operations,” he said.

“We emphatically reject these allegations.

“Mr Wilkie’s inferences and commentary are deeply offensive to Crown, our Board of Directors and our employees. This is amplified by the fact that these allegations have been made by anonymous persons and Mr Wilkie has admitted that he does not know whether there is any substance to them.

“As you would all appreciate, Crown operates in one of the most highly regulated and supervised industries in Australia, involving multiple government agencies and state law enforcement bodies. We have a sophisticated anti-money laundering program and we take compliance with AUSTRAC requirements very seriously.

“We also do not improperly manipulate our gaming machines. Any employee found breaching our codes and practices would face severe disciplinary consequences.

“Crown is a world leader in the provision of responsible gaming initiatives, including the establishment, in 2002, of the world first Responsible Gaming Support Centre, which operates 24 hours a day, 7 days a week.

“I again urge Mr Wilkie, if he believes he has evidence of wrongdoing, to stop the political games and immediately provide any information he has in his possession directly to the relevant authorities. Unless and until he does so, no purpose is served by further discussion of his allegations. We will of course work closely, and co-operate fully, with any inquiries by authorities.”

Mr Wilkie, who first aired the allegations in parliament last week, has also accused Crown of allowing drug use, covering up domestic violence, letting staff gamble on premises and failing to report some transactions of over AU$10,000 as required by law.

“If these allegations are true, then Crown would be facilitating money laundering for any number of nefarious reasons like tax fraud, drug running and even terrorism,” Mr Wilkie said.

Mr Wilkie revealed to local media last week that he was unaware how true the allegations were, but has called for an investigation by both the federal and Victorian state governments. He also suggested that the Victorian Commission for Gaming and Liquor Regulation was potentially complicit in the alleged breaches.

The allegations are the latest in a series of incidents to plague Crown over the past 12 months, the most damaging being the arrest of 19 employees in mainland China last October. However, in a rare bright spot, Alexander revealed that VIP play has shown signs of recovery in recent months with VIP turnover down 17% on the prior corresponding period.

“Crown Melbourne’s VIP program play turnover exceeded expectations, which is encouraging given that most of the prior corresponding period preceded the detention of Crown’s staff in China,” he said.

Crown Melbourne saw its VIP revenue fall 49.7% for the 12 months through 30 June 2017.

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Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

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