Queensland’s gaming regulator, the Office of Liquor and Gaming Regulation (OLGR), is investigating two casinos— the Ville casino in Townsville and the Reef Hotel Casino in Cairns—in response to allegations from local media that both contracted an illicit junket operator to try and attract more VIP patrons to their properties.
A recent report compiled by 60 Minutes, the Sydney Morning Herald and the Age has asserted that the casinos formed an unlawful partnership with Lawrence Fu, a Melbourne-based businessman, which included benefits such as gambling credit and cash in exchange for the promotion and solicitation of high-profile Asian gamblers. Such practices are in violation of Queensland law.
The report also alleges that the Ville’s CEO Michael Jones facilitated the relationship with Fu because he saw it as an opportunity to take advantage of business opportunities that presented themselves after the Crown Melbourne casino was hit with a flurry of regulatory restrictions that caused many high rollers to become uneasy.
A text message written by Jones that was featured in the report read: “I heard that. Presents good opportunities for us because I’ve been told that many simply won’t go to Crown [sic] if they have to provide that disclosure.”
In response, the OLGR has now launched a closed-door investigation into the two casinos, both of whom have yet to be involved in any of the other numerous inquiries currently plaguing fellow operators Star Entertainment and Crown Resorts.
OLGR officials told Inside Asian Gaming that potential punishments “can include but are not limited to penalties against casino operator via prosecution (particularly for serious matters) or penalty infringement notice.”
