High Court to rule on the $20m war of gambling addict Harry Kakavas with Crown
Michael Warner
From: Herald Sun
February 24, 2013
Problem gambler Harry Kakavas, whose fight against Crown is going to the High Court. Picture: Michael Potter
Source: Herald Sun
A PATHOLOGICAL gambler's fight to recoup $20 million from Crown casino will be decided by the High Court.
A full bench of five judges will hear submissions in Canberra on April 4 and 5, in a landmark case that could have major implications for the gambling industry.
A full bench of five judges will hear submissions in Canberra on April 4 and 5, in a landmark case that could have major implications for the gambling industry.
Gold Coast property developer Harry Kakavas has been embroiled in legal action against Crown for six years.
He argues that after signing a self-exclusion order banning him from the Southbank casino for life, Crown devised a scheme to lure him back.
He then lost more than $30 million on a baccarat binge in 2005-06.
At the height of his gambling, Mr Kakavas was betting up to $300,000 on the flip of a card, once losing $2.4 million in 43 minutes.
Over 14 months, his turnover on Crown's tables was almost $1.5 billion.
In appeal papers, his lawyers argue Crown behaved "unconscionably in inviting, inducing or allowing him to gamble when it knew, or ought to have known, that he was suffering from a special disadvantage by reason of his . . . gambling addiction".
They argue: "Crown, for commercial gain, initiated contact with a former patron whom it knew had . . . suffered gambling problems and, having attracted his interest, induced him to gamble and continue gambling . . . without obtaining a medical report stating he was no longer suffering from any gambling problems."
Mr Kakavas's team, led by Allan Myers, QC, will argue his condition meant he was unable to make judgments in his best interests, but "Crown's capacity to make a judgment as to its best interests was unimpaired".
Crown's defence states: "This case failed miserably as the . . . judge found there was no evidence at all of a conspiracy to exploit the appellant (Mr Kakavas)."
One appeal point concerns the original finding Crown hadn't acted unconscientiously in forgetting a NSW police exclusion order that effectively meant Mr Kakavas couldn't keep his winnings.
"(Mr Kakavas) had everything to lose by, and nothing to gain from, gambling at the casino," his lawyers argue.
They will argue that Crown's global chief executive, Rowen Craigie, who along with senior casino executive John Williams is also being sued, knew of the exclusion order and that the law prevented the subject of an interstate exclusion order from gambling in the casino.
"The knowledge of Mr Craigie . . . was the knowledge of Crown," they argue.
Crown's defence is being led by Neil Young, QC.
Crown and Mr Kakavas both declined to comment.
http://www.heraldsun.com.au/news/victoria/high-court-to-rule-on-the-20m-war-of-gambling-addict-harry-kakavas-with-crown/story-e6frf7kx-1226584564817
Gold Coast high roller sues Crown for lost $30 million
According to Harry Kakavas, the conduct of Crown was "high-handed", "in flagrant disregard of the law of the state of Victoria" and designed to cause him to lose "substantial amounts of money".
Among the other allegations made by Mr Kakavas, Crown provided its own private jet on about 30 occasions to fly him to various locations, including to a holiday resort in the Philippines.
Mr Kakavas claimed he was sometimes given between $30,000 and $50,000 on boarding the private jet or upon entering his room at the casino's hotel. The cash would be in a box or bags.
Born in Melbourne, Mr Kakavas moved to Queensland and in September 2004 sold his house for a state-record of $18 million. He was one of three men charged over an alleged armed robbery in Melbourne in 1999. One of the other men charged was soccer star Con Boutsianis. The charges against all three were dismissed.
After being granted an exclusion order in 1995, prohibiting him from entering the casino, it is alleged that Crown's chief operating officer, John Williams, "devised a scheme" to induce Mr Kakavas to recommence gambling in late 2004.
According to Mr Kakavas' statement of claim, lodged in the Supreme Court yesterday, Mr Williams instructed Crown employees "to do what was necessary" to get Mr Kakavas back.
Ishan Ratnam, vice-president of Crown's VIP gaming services, allegedly telephoned Mr Kakavas on behalf of Mr Williams to give Crown "a chance" after hearing that he had been gambling in Las Vegas.
"You don't need to fly 16 hours to Vegas, when you have a two-hour flight to Crown," Mr Ratnam allegedly said. "Johnny Williams said that we will let you bet more than what Vegas allows you, up to $300,000 per hand, and we will give you a 20 per cent rebate on losses." It was alleged that
Crown's interstate marketing manager, Richard Doggert, telephoned Mr Kakavas a month later and said: "What do we have to do to get you to come back to Crown? Johnny Williams really wants you back here."
Mr Doggert allegedly told Mr Kakavas that he needed a letter from a doctor giving him "the all clear to gamble". "We need the doctor to say that you are over your gambling problems."
After telling Mr Kakavas that he needed "a letter from any psychologist", it was alleged Mr Doggert then personally delivered a letter, prepared by Crown, which purported to be a request by Mr Kakavas to have his exclusion order revoked.
Among the other allegations made by Mr Kakavas, Crown provided its own private jet on about 30 occasions to fly him to various locations, including to a holiday resort in the Philippines.
Mr Kakavas claimed he was sometimes given between $30,000 and $50,000 on boarding the private jet or upon entering his room at the casino's hotel. The cash would be in a box or bags.
Born in Melbourne, Mr Kakavas moved to Queensland and in September 2004 sold his house for a state-record of $18 million. He was one of three men charged over an alleged armed robbery in Melbourne in 1999. One of the other men charged was soccer star Con Boutsianis. The charges against all three were dismissed.
After being granted an exclusion order in 1995, prohibiting him from entering the casino, it is alleged that Crown's chief operating officer, John Williams, "devised a scheme" to induce Mr Kakavas to recommence gambling in late 2004.
According to Mr Kakavas' statement of claim, lodged in the Supreme Court yesterday, Mr Williams instructed Crown employees "to do what was necessary" to get Mr Kakavas back.
Ishan Ratnam, vice-president of Crown's VIP gaming services, allegedly telephoned Mr Kakavas on behalf of Mr Williams to give Crown "a chance" after hearing that he had been gambling in Las Vegas.
"You don't need to fly 16 hours to Vegas, when you have a two-hour flight to Crown," Mr Ratnam allegedly said. "Johnny Williams said that we will let you bet more than what Vegas allows you, up to $300,000 per hand, and we will give you a 20 per cent rebate on losses." It was alleged that
Crown's interstate marketing manager, Richard Doggert, telephoned Mr Kakavas a month later and said: "What do we have to do to get you to come back to Crown? Johnny Williams really wants you back here."
Mr Doggert allegedly told Mr Kakavas that he needed a letter from a doctor giving him "the all clear to gamble". "We need the doctor to say that you are over your gambling problems."
After telling Mr Kakavas that he needed "a letter from any psychologist", it was alleged Mr Doggert then personally delivered a letter, prepared by Crown, which purported to be a request by Mr Kakavas to have his exclusion order revoked.
But a Queensland psychologist said she was unable to form any opinion as to Mr Kakavas' suitability to re-enter the casino in late 2004.
"His goal was to be assessed as fit to use the facilities of the Crown Casino in Melbourne which he had 'self-excluded' himself from," the psychologist wrote. "This is the only time that I have had contact with Mr Kakavas … Therefore I am unable to do an assessment of his suitability for re-admittance."
In his statement of claim, Mr Kakavas said Crown violated the Casino Control Act, and had given him credit of up to $1.5 million. Crown had "a duty not to exacerbate or exploit" his weakness but had breached its duty of care by inviting, encouraging and procuring him to gamble.
"Between 24 June 2005 and August 2006, the plaintiff (Mr Kakavas) suffered losses of approximately $30 million," said the statement of claim. "Crown won $30 million … by means of ill practice."
Mr Kakavas claims he and his friends were guests of Crown at the Australian Open tennis in 2005 and were given free tickets and limousine transport, as well as free food, drinks and accommodation at the casino but was told by one employee that Crown wanted to keep his visit "low profile".
Mr Kakavas told The Age last night that "justice will take its course". "I have the finest three QCs in Australia standing behind me," he said.
Two QCs, Allan Myers and Cliff Pannam, as well as Leslie Glick, SC, are representing Mr Kakavas, who is suing Crown for his losses plus interest, costs and "further or other relief as to the court seems appropriate".
Crown last night would not comment.
http://www.theage.com.au/news/national/high-roller-sues-crown/2007/03/06/1173166698664.html?page=fullpage#contentSwap1
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