Crown shareholders shrug off ‘ slap on wrist’ over pokies

CROWN Resorts shareholders have brushed off a $ 300,000 penalty and the regulator’s finding that the company broke the law by tampering with poker machines.

The Victorian Commission for Gambling and Liquor Regulations yesterday took action against Crown Melbourne after it found it had covered over buttons on 17 poker machines. The “blanking plates” meant consumers were only given the choice to make a minimum or maximum bet.

As punishment, Crown, which is majority owned by billionaire James Packer, was issued a letter of censure and fined $ 300,000.

In a statement Crown said it had blanked out the buttons as part of a “trial”.

“The commission accepted that the contravention was not deliberate and that the gaming machine trial did not impact on the return to player ratio,” Crown’s statement said. “Crown Melbourne respects the commission’s decision which brings this process to a close.”

The original complaint, which was denied by Crown, was made by national member of parliament Andrew Wilkie.

“I welcome the Victorian Commission for Gambling and Liquor Regulations’ finding that Crown Casino broke the law by blanking out buttons on poker machines,” Mr Wilkie said yesterday.

“This is a very serious offence for which Crown should stand condemned.

“However, I do not accept Crown’s explanation that this was only a trial because there is an abundance of evidence that the practice has been more widespread.

“Nor do I think the $ 300,000 fine is enough given the severity of the misconduct.”

Investment rating agency FitchRatings also issued it’s outlook on the Australian gambling market yesterday and warned of more VIP gambling volatility.

“We expect moderate casinobased revenue growth over the next two to four years, underpinned by cash flows from stable local mass markets,” the Finch report said.

“VIP program play could see volatility as there is increased competition for this business.”