Meticulous investigations into illegal activities at Crown Resorts have revealed that the extent to which criminal elements had infiltrated the organisation may have been much more severe than initial assumptions.  Evidence that points to dirty money showing up in the operator’s bank accounts, as recently as February, has set off a fresh wave of questions.

Victoria’s royal commission into casino giant’s operations was recently informed that money laundering had been detected in 14 new bank accounts that did not form part of the 2020 Bergin inquiry.

The decision as to whether or not Crown is deemed fit to hold its Melbourne casino license is in the hands of Commissioner Ray Finkelstein, QC. However, as the inquiry was informed, he is not aware of the full extent of the money laundering operations as Crown had postponed an investigation into its bank accounts until recently.

“Had Crown started that review any earlier than February this year, the results would be known to this commission,” counsel assisting Meg O’Sullivan said.

Crown had delayed the launch of a full review of its accounts, seemingly despite its bank’s warnings that suspicious transactions had been identified in 2014. The company held this position in the face of mounting media reports in 2019 about money laundering in its accounts, and in defiance of the external expert advice given to it in 2019 and in 2020, to launch a full review.

2020’s Bergin inquiry in NSW determined that Crown was unfit to run its new Sydney casino. One of the main reasons for this judgement was that the company had been proven to have facilitated money laundering via two patron deposit bank accounts held by shell companies, identified as Southbank Investments and Riverbank Investments.

Ms O’Sullivan pointed out that the review being conducted by Deloitte into Crown’s other accounts would prove whether money laundering in those accounts is “just the tip of the iceberg”.

“Deloitte’s preliminary analysis suggests that of those 45 bank accounts, there are 14 Crown bank accounts with evidence of money laundering. It appears that Crown does not yet know the full extent of that problem, save that it’s likely greater than previously thought,” she said.

The inquiry recently heard that Crown had approached Katherine Shamai, an anti-money laundering expert at Grant Thornton, to launch a review of its bank accounts in August 2019. However, Shamai did not hear from Crown again until over a year later in October 2020, when she was asked to review only the Southbank and Riverbank accounts. As a result, she managed to uncover over $5 million in suspected criminal transactions between 2013 and 2019.

Ms Shamai informed the inquiry that Crown’s lawyers, MinterEllison, tasked her with reviewing other accounts linked to Crown’s Melbourne and Perth casinos in January 2021. This came a full two months after Crown had informed the Victorian Commission for Gambling and Liquor Regulation that the company had already initiated such a review.

According to Ms Shamai, in February Crown’s new lawyers, Allens, issued her with an order to cease the near-complete investigation as the company had opted to employ another party to complete the work.

The expert testified that Crown’s instructions to her were to limit her investigation of its accounts to a set number of “typologies” that may indicate illegal behaviour. As such, she was limited and could not conduct a “full search”. Shamai stated that she was unable to speculate as to why Crown would scuttle her investigation if its stated intention of exposing examples of suspicious transactions was sincere.

According to Crown, it is undergoing a “reform” process to improve its money laundering countermeasures and corporate governance to reclaim its Sydney casino licence.

Ms O’Sullivan’s statements, however, poured cold water all over Crown’s intent when she revealed to the commission that external experts had evaluated Crown’s new anti-money laundering controls and found some of them to be inadequate, a discovery that she said raised “serious concerns about Crown’s ability to implement consistent, effective and sustainable reforms to address its past money laundering failures”.

“It’s open to concluded that Crown’s first steps on its pathway are simply a knee-jerk reaction to the revelations of the Bergin inquiry, even the supposed new and improved Crown had continuing anti-money laundering problems,” she said.

The inquiry is set to resume soon and is expected to present a final report by August 1.

Nobody could objectively argue that Crown Resorts did not have a miserable 2020 and unfortunately for the company, 2021 isn’t shaping up to be much better. While still fielding a barrage of investigations and a wave of bad press, Crown has now been hit with an AUD$1 million, courtesy of the Victorian Commission for Gambling and Liquor Regulation (VCGLR).

A history of transgression

The financial penalty is levelled specifically at Crown Melbourne in Victoria, primarily due to its questionable relationships with foreign high rollers. The VCGLR has alleged that Crown Resorts was remiss in performing its due diligence when dealing with various junket operators. To put it another way, the venue seemed eager to associate with unscrupulous individuals, particularly if the venue saw that these dealings would bring in foreign whales.

The VCGLR Chairman, Ross Kennedy said, “We concluded that in respect of the analysed individuals, the processes implemented by Crown Resorts Limited were not robust. This failure meant it was unclear how certain decisions were reached by Crown Resorts Limited and whether such decisions were made with due regard to Crown Resorts Limited’s regulatory obligations.”

“It is the first time that Crown has been fined the maximum fine available to the Commission under the Casino Control Act 1991.”

Crown Melbourne also received a letter of censure from the VCGLR that effectively bans it from any junket operations at the venue. This restriction will remain in place until the company can guarantee that its Melbourne operation “remains free from criminal influence and exploitation.”

Ultimately, the penalty may be of little consequence as Crown Resorts has already moved to distance itself from junket operators in the wake of the scandal in Sydney. However, it does heap more bad publicity onto Crown’s growing pile of misfortune.

Nothing fine about the fine

As with most corporate penalties, the price that Crown must pay has drawn praise from some quarters, but some feel the punishment is severely inadequate and well overdue.

Samantha Ratnam, the local leader of the Australian Greens, stated that fine is “too little, too late.”

She argued that it should not have needed “years of damning allegations and the announcement of a royal commission” before authorities stepped in.

“While the fine itself will likely be nothing more than loose change to Crown Resorts Limited, we hope this provides the government with yet another sign that it’s time to break up the gambling giant for good,” she said.

Anti-pokie advocate and independent parliamentarian, Andrew Wilkie, has voiced his criticism of the penalty. He referred to it as “laughable,” and said that the VCGLR “should be handing out fines in the tens or hundreds of millions of dollars.”

Far from over

Some accusations have characterised the fine as a performative PR stunt by the VCGLR. The Commission itself has faced months of criticism due to its perceived inertia, as many disapproved of its decision to delay any enforcement actions until the New South Wales regulators had completed their investigation. In the end, NSW concluded that Crown Resorts was unsuitable to run a casino.

Tensions were running particularly high in November of 2020 when Victorian Opposition Leader Michael O’Brien publicly lambasted the VCGLR over its inaction, saying,

“We have not seen Victoria’s regulator lift a finger to test those claims the same way the NSW regulator has done. It’s time for Victoria’s regulator to get out of the kennel and start being a watchdog, not a lap dog.”

The VCGLR’s investigation is still in progress along with that of the government of Victoria. The state revealed that a Royal Commission would be initiated following the release of the Bergin Report from NSW. Another investigation is also being conducted by AUSTRAC that will zero in on how the casino giant dealt with politically exposed and high net worth individuals.

For now, Crown Melbourne can still operate, but its fate is still uncertain as the findings of the Royal Commission, which are due by the year’s end, could spell disaster for the venue.​

Tasmania, an island state of Australia, famed for its beautiful flora and fauna with its mountain ranges and wide selection of national parks is facing a challenge that it seems ill-prepared for in the form of cyber-attacks.

The sole casino operator in the state, Federal Group, recently reported that it had been struck with ransomware attacks. The online barrage began on April 3rd and has affected pokies and hotel booking systems at the Country Club and Wrest Point casinos.

Ransomware you say?

Ransomware is a form of malware, software deliberately created to cause damage. Ransomware blocks access to a user’s data and often threatens to expose it if a ransom is not paid. In recent times, this practice most often involves cryptocurrency.

Ransomware attacks launched by amateurs are reasonably simple to repel, however, more intensified attempts can be impossible to thwart. As the attackers often demand payment in Bitcoin or Paysafecard, they can be very difficult to trace and prosecute.

The number of attacks has gradually increased over the last decade. A worrying 181.5 million reported ransomware attacks were reported in the first six months of 2018, an increase of 229% from the previous year.

CryptoLocker and CryptoWall count as two of the most successful attacks of this nature. The former snagged $3 million and the latter took $18 million before authorities could shut them down.

The Federal Group in the crosshairs

Dr Daniel Hanna, the executive director of Federal Group, stated that the attack occurred on April 3^rd, but it has since been contained. He was, unfortunately, not able to confirm when hotel check-in services and pokies would be available again. The affected locations include the Henry Jones Art Hotel, MACq 01, Saffire Freycinet, Wrest Point, and the Country Club casino.

In an interview, Dr Hannah said, “The Australian Cyber Security Centre was notified and is coordinating relevant law enforcement agencies and continued forensic analysis.  Federal Group has at all times complied with legal and regulatory requirements related to the incident.”

The rest of the iceberg

Former IT experts from Federal Group have made public their concerns that both credit card data and electronic gaming systems may have been compromised. Dr Hanna declined to elaborate on the allegation, saying that such sources “cannot be relied on to provide accurate information.”

The longer its pokies are inoperable, the more negative the effect on Federal Group’s bottom line will be. Over the past eight months, its gaming venues have accrued $53.7 million from punters, which translates to $6.7 million per month.

The Federal Group is bound by the Privacy Act, so it is compelled to inform both affected individuals and the Office of the Australian Information Commissioner of any incidents of this sort. This is particularly applicable when a data breach is “likely to result in serious harm to an individual whose personal information is involved.” At this time, there has been no announcement regarding whether the necessary parties have been contacted, with Federal Group maintaining a stony silence.

Cyber expert weighs in

Terry Aulich, who was once a Tasmanian politician and now serves as a security consultant, was not surprised that such an attack occurred. Aulich stated that any gambling operation would be “high on the list” of serious hackers.

“Young kids are not going to have a go at you if you’re a casino, but it’s groups of major crooks that are going to be your enemy,” he said.

Aulich revealed that he had previously alerted three Tasmanian organizations to the possibility of cyber-attacks. To their detriment, none of them responded with any particular level of concern. Aulich feels that this is down to the mindset that external issues would never befall “dear little old Tassie.”

“That’s entirely untrue. They will look for the weakest link in Australian society, in Australian business, and it may well be that Tasmania is one of those.” He concluded.

The last year has been a devastating one for Crown Resorts and it seems the spectre of misfortune is not done with the multinational operation yet. The latest round of bad news to hit Crown relates directly to its political and business associates.

From the top

It is important to understand exactly where the cascade of Crown’s troubles began to fully comprehend the state that it finds itself in now. In 2020, damaging reports began surfacing in the media that alleged unethical and outright criminal behaviour by Crown. A full spectrum of transgressions was unveiled, including bribery and money laundering.

The advent of these revelations could not have been more poorly timed as far as Crown was concerned. The company was at the time readying itself to open a new property in Sydney. This process was unceremoniously halted as a string of politicians called for investigations into the operation.

New South Wales took the lead and hosted a series of hearings where regulators were tasked with deciding whether Crown was suitable to possess a gambling license within the state. The Bergin Report concluded that this was not the case and the license was denied.

The December opening of the new Crown casino has been indefinitely postponed following this action, resulting in a flurry of internal turmoil. The company’s CEO, five board members, as well as the company’s secretary and general counsel all resigned. The individuals that stepped in to replace them are now working with state regulators to resolve compliance issues.

Fresh scrutiny

More trouble soon followed for the embattled operator and Crown now has to deal with new investigations initiated by regulators in Western Australia and Victoria. The least favourable outcome for the company would be having its license revoked in both states which would effectively put it out of business.

An end to political donations

Crown is, at this moment, barred from making any political contributions. This ends almost a decade of Crown being one of the most generous donors to Australian political parties and candidates.

In a recent statement, Crown validated the news, announcing the same via the Australian Securities Exchange. Andrew Wilkie, an anti-gambling advocate, and independent MP was thrilled at this development.

“Frankly, no political party should accept donations from any gambling company, and the pressure is now on the parties to follow Crown’s lead and promise to end their reliance on the industry, ” Wilkie said.

Murky ethics

Several law firms are pitching up to aid Victoria’s royal commission in its investigation into Crown Resorts, with a sizeable pay package attached to their services, but a conflict of interest may have arisen.

One of the law firms putting themselves forward for the task is Corrs Chambers Westgarth. The firm was previously employed by Crown to advise on some aspects of their intent to build a casino in NSW.

The Blackstone Group is one of Corrs’ major clients and also owns 10% of Crown Resorts, which means that it is the company’s second-largest shareholder.

Charles Livingstone, a gambling regulation expert, advised that it would be a “terrible look” if the Victorian government chose Corrs to assist them. He further stated that Blackstone is in the ideal position to acquire more Crown stock if the owner, James Packer, decides to sell.

On the other hand, Peter Cohen, a former director of the Victorian Commission for Gambling and Liquor Regulation, believes that it is near impossible to hire a law firm with the capacity to conduct a royal commission without any potential conflict with its clientele arising.​

A month-long investigation into Crown Resorts’ license application for its A$2.2 Billion Barangaroo casino resort has ended unfavourably for the company.

The NSW’s Independent Liquor and Gaming Authority (ILGA) presented a report to the State Parliament on 9 February, with the recommendation that Crown needs to make “sweeping cultural changes if it wanted to apply for a license in the future.”

The head of the inquiry and former chief judge in the NSW Supreme Court, Commissioner Patricia Bergin stated that the Crown Resorts casinos in Melbourne and Perth were proven to have serious problems with money laundering and were possibly linked to international organised crime groups.

The company’s numerous regulatory arrangement failings were also brought up, with some crucial issues that needed to be urgently remedied.

This places the new resort in Sydney in an awkward position as it has already opened its hotel and restaurants to the public. The report has yet to be adopted by the ILGA but it is widely understood that this is a mere formality.

The report identified several “core problems” that made Crown unsuitable to hold the requested license. These include the operator’s “poor corporate governance” and “deficient risk-management structures.”​

The Consumer Electronics Show (CES) held its 51^st event from January 11 to January 14. In a radical departure from all its previous shows, the CES event was hosted exclusively online for the first time. This change was prompted by the necessity of social distancing and travel restrictions resulting from the continued spread of COVID-19. Thousands of ‘attendees’ flocked to the digital showcase via the CES media hub.

While the event covered a vast amount of topics, products, and services, some standout examples should be of particular interest to real money casino enthusiasts.

Sports and Gaming Technology

Sports enthusiasts of all types had plenty to get excited about with innovations for casual fans, athletes, and punters all making an appearance. The fitness-related tech showed at CES embraced the realities of the present and the future possibilities with a focus on home-based physical wellness innovations. Aside from advancements in earbud and smartwatch technology, the exhibition notably showcased virtual trainers and special fitness walls that detect your body’s movements to evaluate your strengths and developmental areas.

Why fitness matters      

Exercising is about more than just making sure you look good.  While being outwardly fit can give you a confidence boost, it is also vital to the essential functions that our bodies perform. The areas of your brain that control cognitive function show increased activity when your body is in motion. So, aside from boosting your other internal organs’ efficiency, the brain also derives benefit from a more active lifestyle that can contribute to more efficient cognitive ability.

A perkier brain naturally lends itself to being more helpful in various situations that require focus, like a game of poker, for example. You could take it even further by combining a fairly rigorous exercise regime with healthier eating habits and get the most out of your grey matter, which is essential for gaming situations where presence of mind is vital.

You can check out all the exciting products on offer for yourself on the official CES website. Notable inclusions came courtesy of Amazfit, a fitness technology company that introduced a series of smart devices geared at improving the quality of workouts more for a full spectrum of users from casual home-exercisers to pro athletes.

With social distancing restrictions, business closures, and the economic impact of the pandemic on many individuals, gym attendance has sharply declined from previous levels. This does not mean that fitness can’t still be a priority, so home-based solutions are set to keep increasing in popularity. Projections from Global Market Insights show that by the year 2026, the online fitness market is expected to be worth over $30 billion.

Gaming Laptops

If you want to get a glimpse into the future, the event featured several product prototypes with fascinating features and improvements on old technology. Razer wowed attendees with its groundbreaking Razer triple-display laptop prototype named Project Valerie. Intel, pioneers in the ultraportable gaming laptop segment, showed off its 11th-generation of gaming processors named the H-series. These new processors weigh significantly less and are much thinner than current technology.

Asus, Dell, HP, Acer, and Lenovo also exhibited new laptop models with features and performance upgrades that make them appropriate for a range of tasks from home business to online casino gaming.

A multitude of innovations

Audiences at CES 2021 got to see a new series of giant TVs that enable the creation of realistic virtual environments that could slowly replace visits to brick-and-mortar casinos. The convenience of being able to experience a casino visit without the inherent physical risks means technology like this has a prominent future. Rollable phone technology also made a showing with handsets engineered for mobile gameplay. Inventions geared at fighting the pandemic were also on display, advancements in touchless technology for safer visits to physical venues are likely to become a common sight for casino goers.​