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Two Queensland casinos under investigation over illegal junkets

Townsville casino, The Ville
The Ville is one of two Queensland casinos alleged of running illegal junkets. (Photo: KLN Group)

The Queensland Government is conducting an investigation into claims of unlawful junket activity taking place at The Ville Resort-Casino in Townsville.

In a bid to entice high rollers to visit the Townsville casino, it has been revealed that The Ville compensated an illegal junket operator with both cash and loyalty points.

The state government acknowledged the gravity of the claims and stated that an inquiry into the matter is currently being conducted by the Office of Liquor and Gambling Regulation (OLGR).

Fairfax Media – which also made public the misdeeds of Crown Resorts and The Star – is responsible for bringing this latest controversy to light. The Australian news giant conducted independent investigations into both The Ville in Townsville and The Reef Hotel Casino in Cairns, both of which are located in northern Queensland. According to the findings, both venues were revealed to be operating with at least one junket operator each.

Lawrence Fu, a local businessman, is reported to have been given cash and casino credit by the casinos in order to entice gamblers from Asian countries to visit the establishments. Due to the fact that Fu is not a licensed junket operator, this activity constitutes a breach of the Casino Control Act that applies in Queensland.

According to the reports, the CEO of The Ville, Michael Jones, was involved in the process of hiring Fu and Paul Desmond as unofficial junket operators. Desmond lodged a written statement to the OLGR about his interactions with Jones and claimed that he never participated in any junket-related activities.

Fu acknowledged that he brought “friends” in packs to The Ville, and that he benefited financially and gained other advantages from the property. However, he said there was no connection between the two.

Although there has been friction between casinos and junkets for a while, wagering promoters are still permitted in Queensland. The state government must, however, provide its consent to those in charge of the junket.

“The Queensland inquiry must be broadened to shine a light on the Cairns and Townsville casinos and determine the extent to which the authorities were prepared to turn their back to suspicious behaviour,” said Transparency International Australia CEO Clancy Moore.

The Ville issued a statement claiming that the allegations were not factual and that the casino did not violate any laws.

Premier Annastacia Palaszczuk responded to the allegations by stating that she was clueless about the charges and promised to “look into that”.

Tim Costello, spokesman for the Alliance for Gambling Reform, was taken aback by the response given by the Premier.

“60 Minutes is a national program – how can the Premier and her staff not be briefed on it?” he said.

“This is just the Premier being really head in the sand.

Calls for a wider probe of Australian casinos are becoming louder in response to the latest allegations of misconduct.

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