The Ville charged over junket partnerships
The Ville Resort-Casino in Townsville has been charged by the Queensland gambling regulator for breaking the state’s casino laws. The news comes days after the Cairns casino operator was penalised for paying a junket tour operator.
For the past few months, Queensland’s gambling regulator has investigated The Ville for allegedly being a part of an “illegal junket operation”. The investigation kicked off after the regulator discovered the “alleged unapproved agreements” the luxury venue has been involved in from as far back as February this year.
Over the past month, smaller gambling operators in Australia were believed to have links with junkets. While collaborating with junkets is legal, such arrangements require the approval of state regulators.
The Office of Liquor and Gaming Regulation (OLGR) has formally charged The Ville for violating two sections of the Casino Control Act.
The Chris Morris-owned casino started having issues in August, when it was accused during the Channel Nine program 60 Minutes of allegedly working with an unapproved junket. The report claimed The Ville paid the junket operator “in cash and loyalty points” to bring high rollers to the gambling hall.
At the time of the report, the Townsville-based luxury venue maintained that it had not violated any gaming laws, and the report consisted of factual inaccuracies. The Townsville Magistrates Court will receive and hear the case in January.
The Ville’s ongoing case with the Queensland regulator comes after the Reef Hotel Casino in Cairns fell into trouble with the authorities for a similar reason. The operator was fined $10,000 for working with an unapproved junket operator to reel in more customers.
READ: Two Queensland casinos under investigation over illegal junkets
Lawrence Fu, the tour operator, was given 0.05% of whatever Casinos Austria International (Cairns) Pty Ltd got from the customers he provided to the venue. Mr. Fu received $21,400 in betting vouchers per the agreement, but the state gaming minister did not sanction it.
The OLGR is considering penalties under Queensland’s casino legislation and could levy more fines. According to the latest reforms, gambling operators must self-report breaches and work with the state regulator. The new rules will be implemented in 2023.
A few years ago, junkets were a key part of the gaming industry, particularly in major Asian gaming hubs such as Macau. As a result of money-laundering rumours as well as ties to organised crime, their reputation dwindled.
The incident between Alvin Chau and Suncity Group is a key example. According to reports, Chau laundered several million dollars via casinos in Australia, Macau, and other locations.
A large number of gaming operators, particularly those in Asia, have relied on junkets at one time or another. Many of these casinos have cut ties with tour operators in recent years, leaving behind only a tiny fraction of what was a sizeable number of partnerships.
Australia will likely follow Macau’s lead in revising its gambling laws regarding junkets. Queensland is the only state in the country with regulations that mandate casinos pre-approve their partnerships with junket operators. Gaming venues in other states were allowed to work with junkets; however, they were to ensure their partners stayed within the limits of the law.
