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The inquiry into Crown Resorts operating practices is unearthing some shocking and concerning pieces of evidence. According to the latest pieces of evidence presented to the investigating panel, Crown Resorts knowingly and willingly turned a blind eye towards loan sharks operating on their Perth casino floor. The issue strikes at the heart of the self-regulation framework that previously existed at the venue, where exploitation of the rules became a common practice.
Piles of cash have been lent to gamblers across Crown Resorts Perth over the past years by loan sharks. Providing credit to gamblers is highly illegal in Australian casinos, and the inquiry into Crown’s operational practices have heard how the casino knowingly allowed this practice to go ahead with impunity. ©frycyk01/Pixabay
The evidence comes from multiple testimonies given by ex-customers at the venue, who have recounted incidents where they were approached by loan sharks offering them cash to keep playing in the casino. Men would approach gamblers who were losing and make charming propositions to allow them to keep playing and win back the losses. What followed were often threats of violence, death threats, and extortion of those who were in debt to the gangs operating the syndicate.
The inquiry investigating the activities of Crown Resort has already uncovered evidence of money-laundering within the organization. This latest advancement in the case will be used to determine the suitability of the casino to hold an operating license. The Perth Royal Commission will absorb this new evidence into their growing case against Crown Resorts. Ultimately, the commission is striving to understand the suitability of the casino to hold an operating license in light of evidence detailing their systematic breaches of regulation over the past years.
How the chips will fall in this case is still a matter of great contention, the past five months have been a particularly active time for the investigating teams. The Royal Commission investigating the activities at Crown Perth has spoken to a number of individuals, including former employees, members of staff at the industry regulators, and the central authority on gambling in Australia, the Gaming and Wagering Commission.
Inquiry Hears Witness Testimonies of Receiving Death Threats
Death threats are one thing nobody wants to experience at a casino, or anywhere for that matter. The inquiry has listened to witness testimonies recounting incidents where loan sharks operating within the confines of a Crown Resorts casino have received death threats. The Financial Counselling Australia (FCA) organization has detailed several instances of loansharking taking place at the casino, with Crown seemingly turning a blind eye to the activity when it arose.
An anonymous gambler named only in court papers as Stuart, reportedly took a loan from a loan shark of some $10,000 in Crown Resorts Perth. After he subsequently lost this money on the tables, the loan shark began harassing the man and saying he would end up with concrete boots. The problem with these types of loans is often the enormous interest that is charged on top of the loan, often upwards of 50% of the total money being lent to someone.
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There have been several similar reports of loan-shark “vultures” operating on the floor of the casino, some of them for many years without any form of retribution. This issue has become some sort of open secret within the community at these venues, and there are often people who lodge complaints to the security teams on sight claiming they have been approached by men trying to loan people money after they suffer heavy losses.
There are many other gamblers that are able to recount similar experiences when playing at Crown Resorts venues. Financial counselors listening to the problems faced by those entangled in debt with loan sharks have heard detailed reports of how Crown Resorts staff had repeatedly turned a blind eye to blatant loansharking in their casinos. With cameras and security staff everywhere on the casino floor, there really shouldn’t be a possibility for this predatory practice to go unchecked.
Financial Counselling Australia is an organization closely involved in directing company policy around the topics, and they have already stated categorically that loan sharking in casinos is now one of their primary concerns. Casinos in Australia have been prohibited from providing credit for a long time already, thus turning a blind eye to loan sharks in the venue is the equivalent of being a counterparty to a crime where willful blindness enabled its execution.
Major Structural Changes to the Gambling Laws Proposed
There are a series of significant changes heading down the line for the gambling industry in Australia, with calls for a national regulator to eliminate the conflict of interest that currently exists, and a demand for greater support for compulsive gamblers. The Financial Counselling Australia recommendation for casinos to offer a comprehensive self-exclusion register is already being debated and planned for launch next year.
An overhaul of the current gambling system is expected to arrive in the coming weeks, as critics are piling on the pressure and exposing the current vulnerabilities that exist. There is a fundamental lack of direction and motivation within the regulatory framework that currently exists, operators do not have the tools to prevent danger from coming to their doorstep. It is clear at this point that self-regulation doesn’t work and it’s time for this to be over.
In light of all the security violations being unveiled by the investigating committee in this case, one theme that has continued to emerge has been a demand for gambling end-point care. The organization Centrecare has been particularly vocal in this endeavor, managing to reach a large community of troubled gamblers. This organization noticed an already 25% rise in their inbound requests for people seeking advice.
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The current conflict of interest is clear and there are calls for the funding of these organizations to be switched from voluntary contributions offered by gambling companies to the taxes levied on gross gambling revenues. This would represent an appropriate change in posture for the system and better protect the integrity of these membership committees.