High Rolling Gambling Addict Lured

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.

 

Mr Kakavas lost his case against Crown in the Supreme Court, and the Court of Appeal rejected his challenge to the ruling. But the High Court has now granted him special leave to appeal.

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

 

Jamie Berry
March 7, 2007

 

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.

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

Where the future lies

Does anyone see a pattern here?

Local supply of Gambling Addicts are destroyed, financially hosed.

Profits from Gambling Addicts disappear.

Solution?


EXPANSION!   The Universal Solution that knows no boundaries.

Eliminate any pretense of consumer protection. Buy off a few more politicians. 

The ultimate result?    Implosion!   Give it time....keep up the pretense in the meantime.  

Echo says the future lies in VIP dollar

Date August 16, 2012

Colin Kruger

WITH rival casino operators, James Packer's Crown and Asian giant Genting, hovering over its share register, investors were happy to shrug off Echo Entertainment's 80 per cent drop in net profit to $42.2 million yesterday.

Echo chief executive Larry Mullen said the company gained a share of Australia's VIP market during the year but would still consider a joint venture with Crown if it made sense for shareholders.

''I believe the biggest opportunity for us is the VIP segment, and I say that for us both domestically and internationally,'' he said.

Speaking on Crown's proposed joint venture - which would use Echo's licence to add VIP gaming to the luxury hotel Crown is planning for Barangaroo - Mr Mullen said: ''We're open to anything that would relate to shareholder value.''


Echo's chips are down. Photo: Bloomberg

Crown and Genting each have about 10 per cent of Echo and have applied to the gaming regulator to lift their stakes. Echo said it was hard to compare its results, considering it was still part of Tabcorp for most of the previous period, but the biggest difference was one-off costs, such as the $38 million in expenses at its revamped Sydney casino, The Star, and $30 million in write-offs related to VIP gamblers.

A lower win rate on the VIP business led to a slight decrease in gross revenue to $275 million, compared with the 57 per cent normalised growth expected. Soft consumer spending also had an impact, especially in Queensland.

Deutsche Bank analyst Mark Wilson said the result was in line with guidance, but the performance of The Star ''continued to disappoint''.

The shares fell 11¢ to $4.07, but Mr Wilson said corporate activity would support the price. The stock has risen more than 30 per cent since February when Crown said it had doubled its stake to about 10 per cent. It has since applied to the casino regulators to lift its stake to 25 per cent. VIP may be the future for Echo, but the good news out of the results yesterday came from the contribution of less well-heeled clientele who were spending up on Echo's poker machines.

Echo said it lifted its share of poker machine revenue in New South Wales to 8.2 per cent, up from 7.4 per cent. ''Our largest margin contribution would come from that part of the business,'' Mr Mullen said. Revenue and margins at The Star are expected to improve, with most of the $860 million refurbishment completed.


http://www.brisbanetimes.com.au/business/echo-says-the-future-lies-in-vip-dollar-20120815-2490i.html

Predators!

Gambler loses appeal bid to recover lost money from Crown Casino

• by: Norrie Ross
• From:Herald Sun
• May 21, 2012

A GAMBLER who turned over nearly $1.5 billion at Crown in just 14 months has lost again in his bid to recover more than $20 million in losses from the casino.

The Court of Appeal today threw out an appeal by Gold Coast property developer Harry Kakavas, who claimed that Crown took advantage of his pathological gambling addiction to lure him to its gaming tables.

http://www.heraldsun.com.au/news/more-news/gambler-loses-appeal-bid-to-recover-lost-money-from-crown-casino/story-fn7x8me2-1226362050570

Cost of Gambling Addiction: around $4.7 billion annually

Gillard's gambling problem
Michael Mullins

Tara Moriarty, secretary of the NSW branch of the Liquor and Hospitality Union, has made perhaps the most useful contribution to the current debate on poker machine reform.

She distanced her union from clubs industry claims, insisting the union was 'certainly not buying into' the 'probably over-stated' campaign. But she stressed that 'it doesn't mean that the workers shouldn't have a seat at the table during this process to make sure that their jobs are protected'.

Her comments reflect an appreciation that care for problem gamblers needs to be balanced against care for workers whose jobs are threatened.

The Federal Government, on the other hand, is open to the accusation that it regards the jobs as expendable because its survival depends upon the successful passage through parliament of the mandatory pre-commitment legislation. Moreover the Prime Minister's ostensibly empathetic assertion that 'too many people would know a family torn apart by problem gambling' could be disingenuous.

Many people also know families torn apart by unemployment, and there is an onus on Julia Gillard to demonstrate that she is primarily motivated by an ethic of care for the wellbeing of her citizens, and not her own political survival. If this is the case, it follows that she will look after workers affected by the pre-commitment technology.

Assistance provided for workers to make the transition to alternative employment is not the same as the compensation packages that will be sought by the clubs industry and affected gambling entrepreneurs such as James Packer, whose business models rely on profiting from the misery of problem gamblers and their families. 40 per cent of the clubs' profits come from people addicted to poker machines. These profits should be regarded as ill-gotten, and therefore not deserving compensation.

That figure is quoted by Rev. Tim Costello, who chairs the Australian Churches Gambling Taskforce. He suggests that clubs dependent upon problem gambling revenue are 'operating [on] an unsustainable business model and should seek advice from Western Australia, where there are no poker machines outside the casino, yet communities and clubs thrive'.

There will be ambit claims for compensation if the ethic of care is obscured by the greed of the clubs and gambling entrepreneurs.

There are arguments that pre-commitment technology is a sign of the 'nanny state' at work and therefore a threat to civil liberties. Nanny state rhetoric is a ruse that gives licence to those who are greedy, or psychologically robust, to prey on the weak and vulnerable.

The so-called nanny state is actually a euphemism for a state that cares for its citizens. Certain powerful interests perceive that as a threat.


--------------------------------------------------------------------------------

Michael Mullins is editor of Eureka Street.


Poker machine reform debate needs cold facts not hot air: churches

ACGT Media Release

Rev Tim Costello, Chair of the Australian Churches Gambling Taskforce Chair said too many people have been caught by the poker machine lobby’s propaganda and it’s disappointing to see the Opposition supporting their campaign.

Rev Costello made the comments today following Clubs Australia’s rally in Sydney last night which was addressed by Leader of the Opposition, Tony Abbott and Member for Werriwa, Laurie Ferguson.

“The fact is that 40 per cent of clubs’ profits come from people addicted to poker machines.

“And because not all clubs profit equally, only those that rely on profits from problem gamblers will feel the pinch”, Rev Costello said.

“It’s these clubs that are operating an unsustainable business model and they should seek advice from Western Australia, where there are no poker machines outside the casino, yet communities and clubs thrive.

“Australians spend twelve billion dollars a year on pokies.

“Only 600,000 Australians play poker machines at least weekly, and of those 95,000 are poker machine addicts.

“This group of people loses on average up to $21,000 a year. Some lose a lot more. Another 95,000 are at risk of becoming problem gamblers. This second group loses on average up to $8,000 a year.

“So poker machines are a problem for around a third of regular players. It’s a very unsafe product for some.

“Church agencies help individuals, families, friends and colleagues deal with the impact of poker machine addiction. Problems include relationship breakdown, mental health problems, unemployment, debt, financial hardship, theft and other crime, social isolation and all too often, suicide.

“The social cost to the country is around $4.7 billion annually.

“Mandatory pre commitment will require all poker machine players to determine ahead of time how much they are prepared to lose in any sitting. This, as part of a range of measures, will help problem gamblers who are ready to help themselves and help protect a significant number of at risk players from becoming problem gamblers.

“It’s mandatory to wear a seatbelt, to wear a helmet on a bike. It’s illegal to serve alcohol to someone who is already drunk and there are limits on where people can smoke, to prevent the impact of passive smoking.

“This is not the nanny state in action. It’s good public policy that has lead to healthier communities. Australia’s churches call on all people of goodwill to support the reforms,” Rev Costello said.

Members of the Australian Churches Gambling Taskforce include the heads of Australian Christian Churches and the heads of their social services agencies nationally, united by a commitment to make poker machine gambling safer.

Sioux Falls police arrest suspect in Crown Casino robbery

Sioux Falls police arrest suspect accused of robbing Crown Casino
By Tim Peters

On Monday, detectives of the Sioux Falls Police Department Property Crimes Section made contact with a male being held at the Minnehaha County Jail who matched the description of the suspect in the October 12, 2011 robbery of the Crown Casino at 3401 E. 10th St., Sioux Falls.

In the course of the investigation it was determined that that personSilky Aviance Richardson, 22 of Sioux Falls, was responsible for the robbery.

Richardson was arrested for one count of 1st Degree Robbery and Aggravated Assault. He was lodged at the Minnehaha County Jail.

The investigation is continuing.

Crown Casino Encouraged Loser

Gambling addict stole $3m from NuFarm to pay Crown Casino

A MAN with a gambling addiction of "majestic proportions'' stole more than $3 million from his employer to pay off debts racked up at Crown Casino, a Melbourne court has heard.

Despite his debts Robert Somerville, 59, still enjoyed a life of luxury courtesy of the casino, which flew him to events and provided him with incentives to "lose large amounts of money at their establishments'', a Victorian County Court judge said.

Somerville was sentenced to nine years' jail on Friday after pleading guilty to stealing $3.8 million over six years from his employer, Nufarm Limited, which makes weed and pest-control products for farmers.

Judge Margaret Rizkalla said a psychologist's report showed Somerville had a pathological gambling addiction and at one point moved into an apartment across the road from the casino.

The psychologist found Somerville had a gambling addiction of "majestic proportions'' which had been encouraged by Crown Casino, the judge said.

Somerville stole the funds from Nufarm between 1995 and 2001 when he was employed as a production manager at the company's site at Laverton, southwest of Melbourne.

Judge Rizkalla said Somerville had exploited deficiencies in the company's accounting systems when it was his job to identify and fix those problems.

Invoices for goods and services were inflated, or created for services that were never or only partially supplied, Judge Rizkalla said.

Somerville also negotiated for another company to pay him secret commissions to keep lucrative contracts with Nufarm, she said.

The prosecution argued that Somerville ultimately received about 90 per cent of the total monies stolen, but the defence argued the amount was closer to 50 per cent.

Judge Rizkalla said it didn't matter because the overall offending was significant.

Somerville had caused the company financial difficulties and traumatised other employees, the judge said.

She added that Somerville had continued offending after he was dismissed from Nufarm and was subsequently jailed for two years and two months for tax fraud committed in 2005 and 2006.

Somerville is serving a 12-month minimum term on that sentence.

His gambling addiction was not taken into account when he was sentenced to a non-parole period of six-and-a-half years for the current offences.

"Gambling does not entitle an offender to an appreciable moderation in sentence,'' Judge Rizkalla said.

"This involved a gross breach of trust, over six years.

"You abused what you saw to be a lax system and a deficiency in your employer. It was in fact your role ... to ensure that it (the deficiency) was eliminated, not use it to your own benefit.''

Somerville pleaded guilty to 46 charges of obtaining and attempting to obtain property by deception, and receiving secret commissions.

Estimates Problem Gambling Costs $4.7 Billion a Year

Pro-pokie campaign not worth a punt
By Ben Peterson

I was as worried as anyone when I wandered down to my local pub to find a poster over the door announcing the government was trying to shut it down.

In their national campaign against proposed changes to poker machine use, Clubs Australia and the Australian Hotel Association (AHA) say “some bloke in Tasmania” (Independent MP Andrew Wilkie) is trying to push through laws that will bankrupt our pubs, destroy our communities and put us all under more government surveillance.

As well as posters and coasters in pubs, Clubs Australia and the AHA have run TV commercials. The commercials explain the threat is not just to those who want a punt, but to our very way of life — it’s un-Australian.

So naturally I went home and investigated the matter, ready to go off to war against those evil bureaucrats in Canberra. But to my surprise (and relief) I couldn't find any trace of a wowser inspired assault on society.

What is actually being proposed is not a 1984-style assault on our civil liberties. What’s proposed is a system of self-regulation for poker machine users, in that you set your own limits to how much you gamble.

It’s limited to poker machines, not other forms of betting. There’s no talk of a government register or surveillance.

Contrary to the hysterical screams of industry executives, no one is trying to stop me putting a tenner on the Bulldogs for the footy on Saturdays (although the way they’ve been playing, someone probably should).

The government isn’t going to kick down your door and confiscate the sweep when you have the neighbours round to watch the race on cup day. “That bloke in Tassie” has nothing against you having a casual punt.

The inspiration behind all this is that we need to find ways to help problem gamblers.

What’s proposed is a targeted system. To play the slots you will need to get a card or sign in (like you would to have a meal at my local club) and set a limit on how much you’re willing to lose before you start playing.

This doesn’t target the regular punter. This is meant to help those who are problem gamblers. People who are struggling with gambling problems can then limit their losses, and not get caught up in the game and extend their stay.

The reality is that gambling addiction is a serious problem. The government estimates the social cost of problem gambling adds up to $4.7 billion a year.

Up to half a million Australians are at risk of becoming, or already are, problem gamblers. One in six people who regularly play the pokies is a problem gambler, and three quarters of problem gamblers have issues with poker machines.

Contrary to the popular myth, problem gambling is something that affects Australian youth. Gamblers aged 18-24 lose more on poker machines than any other group.

Problem gambling is a social issue that affects millions of Australians. The proposed regulation will go some way to helping ease that problem. Why then the hysterics?

Turns out gambling is a rather profitable business. Pokies alone generate about $12 billion a year for their owners (which isn't really surprising as they're programmed so that it’s impossible for you to win). That’s big money.

For those at the winners’ end of the spectrum, that’s 12 billion reasons to stick with the status quo.

Twelve billion dollars is a huge amount of money that goes out of community pockets and into the hands of private businesses, often big corporations.

The gambling lobby tries to present this as something that will hurt local community groups. But the biggest venues for pokies machines, (that generate the biggest annual profit) are the casinos, such as Melbourne Crown casino, which is the largest casino in the southern hemisphere.

Crown boasts a gaming space that covers an area equal to more than two city blocks. In 2009/10, Crown casino ran at a profit of $288.4 million, which doesn't go back into community projects such as may be the case with some sports clubs, but into the hands of shareholders.

Even something as simple as taking measures that can help problem gamblers cuts into this very lucrative business, and those profiting from it don't want that. It’s pure old-fashioned greed.

It’s not often that the government will pick a winner. It's even rarer to see the government go against such a huge and profitable industry. These laws, if they can get up, could have a real impact on reducing problem gambling and its social cost.

However, if we want to see problem gambling reduced even further, we need to see further regulations.

Let’s ban advertising for gambling, in the same way smoking ads are banned. This would have a dramatic effect.

We could apply loss restrictions to the pokies, so people can only lose a certain amount in any sitting. Regulations could be placed on the odds of the machines, to put punters closer to a level footing.

There’s a lot we can do, and a lot that needs to be done. But the one thing that's a sure bet is that if these changes were ever proposed they would be fought tooth and nail by the industry.

Any affront to power, like the one being proposed by “that bloke in Tassie”, will be dependent on our ability as a community to understand it and rally around that cause.

We need to campaign and build alternative bases of power based in our communities that can push back against the pressure of industry groups.

Without that, real social progress draws some pretty long odds.

Crown casino took advantage of gambling addict

Crown casino took advantage of millionaire Harry Kakavas, court told
Norrie Ross
From: Herald Sun

CROWN Casino took advantage of millionaire property developer Harry Kakavas by allowing him to play the baccarat tables when it knew he had a pathological gambling addiction, three appeal judges heard today.

Allan Myers QC, for Mr Kakavas, said his client was not truly responsible for his own actions when he lost millions at Crown and the casino should have refused to deal with him.

Mr Myers told the Court of Appeal that a person betting $300,000 every few seconds at the baccarat table was an indication they did not have the ability to look after their own interests.

Mr Kakavas had excluded himself from every casino in Australia, including Crown, and it was not disputed he had a "special disability'' that meant he could not deal on equal terms with Crown.

"He had a 12-year history with Crown and an evident gambling problem,'' Mr Myers said.

Mr Myers said the law stated that parties to any transaction had to have the ability to "conserve their interests'' and casinos were not exempt from the protection offered to people with disabilities.

"A person seeking to conserve their interests would not enter a casino,'' commented Justice Philip Mandie.

The Gold Coast property developer turned over $1.5 billion on Crown's baccarat tables between June 2005 and August 2006, betting up to $300,000 a hand.

Mr Kakavas is appealing against a decision of Supreme Court judge Justice David Harper, who threw out Mr Kakavas's $35 million claim against Crown, saying his gambling addiction did not disadvantage him in his dealings with the casino.

Justice Harper said he accepted Mr Kakavas had a medically diagnosed gambling addiction, but concluded that he had been in full control of his actions and at all times had the power to self-exclude.

In the same judgment, Justice Harper questioned Crown casino's self-proclaimed status as the world's leader in responsible gambling.

Mr Myers said the Gambling Regulation Act said that people who self-excluded themselves or were excluded for other reasons should not be allowed to enter a casino or remain in a casino.

Justice Mandie asked if it was relevant whether a person was wealthy and could afford to lose large sums of money.

Mr Myers said that legally a casino could not accept a $1000 bet from the richest man in the world if he had excluded himself.

"Whether Mr Kakavas could afford to lose is neither here not there,'' he said.

The hearing is continuing.

Crown Casino targeting seniors

Crown Casino targeting seniors
Richard Willingham

CROWN Casino is luring senior citizens and cash-strapped community clubs to the casino by offering rebates, exposing vulnerable people to problem gambling, gambling researcher Professor Linda Hancock says.

Professor Hancock, from Deakin University, will today release her book Regulatory Failure: The Case of Crown Casino, in which she argues that the regulation of the casino is failing people because of ''weak sanctions'' on the irresponsible service of alcohol and on those failing to implement the Responsible Gambling Code of Conduct.

In the book, Professor Hancock said seniors and people from non-English-speaking backgrounds were being targeted by Crown's ''Red Carpet Program'', which was promoted to social clubs as an outing. Bus packages are available for groups and clubs can earn a rebate but only if they stay for at least four hours, or six for a non-gambling function.


Patrons are given gambling vouchers, as well as lunch coupons, upon arrival.

Visitors on tours are also signed up to loyalty programs, which exposes them to marketing for other gambling products.

In her book, Professor Hancock quotes a survey of 204 participants on six Crown bus packages from northern suburbs social clubs, which found evidence of ''at-risk'' gambling behaviours with 42.9 per cent spending more than they had planned and 23.7 per cent saying they planned to return to the casino to win back money.

The Age contacted Crown Casino's media department but received no reply by deadline.