Drug boss spent $15m at casino

5:00 AM Saturday May 23, 2015

 

Head of pseudoephedrine syndicate produced $67 million turnover in wins and losses at SkyCity’s VIP room. ''

 

 

 

 

One of New Zealand's biggest convicted drug smugglers spent $15 million at SkyCity casino - while receiving the unemployment benefit.

Van Thanh Tran was one of six casino high-rollers under surveillance by police in Operation Ghost, which targeted an organised crime syndicate smuggling large shipments of pseudoephedrine from China into Auckland.

Tran was the "boss" and has yet to be sentenced after earlier pleading guilty to importing and distributing pseudoephedrine, used to manufacture methamphetamine, including 250kg smuggled in a single shipment.

Also known as Peter or "Elder Brother Ching", Tran had been on the unemployment benefit since immigrating to New Zealand in 1993 until 2012. A father of three, he has lived at a number of addresses in Auckland and Dunedin, where he ran a tiling company, but was living in Flat Bush, in South Auckland during the Operation Ghost investigation.

But a Herald investigation can reveal that the 48-year-old was one of six VIPs at SkyCity under surveillance in Operation Ghost.

The police discovered Tran's identity by using an undercover officer to pose as a drug dealer and infiltrate a pseudoephedrine syndicate, then "working their way up the tree". Tran was sitting at the top.

He sold pseudoephedrine in bulk to wholesalers with their own supply networks, but kept his "hands clean" by using lieutenants to keep his stockpiles safe and deliver packages on his instructions.

Evidence given during the trial described him as a "big gambler", once losing $800,000 in a week, and a loan shark who would lend amounts as large as $300,000.

SkyCity records show he spent $15 million in a 15-month period and his volume of play - the churn of money won and lost - was $67 million.

Overall Tran lost more than $1.1 million.

The high-roller also held an account with SkyCity in which he deposited $2.5 million of gaming chips, cheques and cash in 11 months and withdrew $460,000 during the same time.

 

Police say this level of gambling is consistent with someone who can access substantial sums of cash despite declaring a much smaller legitimate income, according to an affidavit in a parallel civil court case to seize Tran's assets.

"Many of those involved in drug dealing activity attend casinos for the purpose of 'laundering' funds that have been generated through their unlawful activity."

The police have seized two homes from Tran, several cars including an Audi, $85,000 cash, bank accounts holding more than $200,000 as well as jewellery. Most of these assets were held in the names of family members.

The link between organised crime and the casino gives ammunition to the anti-gambling lobbyists who warned SkyCity could become a "scene for large-scale criminal activity or a meeting place for people who commit serious crimes".

But SkyCity said it was "extremely comfortable" it had met obligations under anti-money laundering and problem gambling laws, while the millions of dollars gambled "were not out of the ordinary" by VIP standards.

A spokesman said the casino could not comment on individuals for privacy reasons and strict disclosure rules in the anti-money laundering laws, but confirmed "a number of those people did come to our attention on several occasions".

"We were co-operative with the police from the start of this investigation. We are extremely confident that we took all appropriate actions under AML requirements and also that we took proactive steps from a host responsibility perspective," the spokesman said.

These steps - some of which predated Operation Ghost - included staff interventions, interviews, monitoring, and, in several cases, banning people from the casino.

"Only a few of the group of players identified by police were regular visitors to the casino, and the level of their play varied widely. In most cases their turnover was not out of the ordinary for local VIPs."

Any suspicious transactions are immediately reported to the Police Financial Intelligence Unit.

A spokesman for Internal Affairs said the department was committed to ensuring that casinos remained free from criminal influence or exploitation and held regular meetings with SkyCity and government agencies to discussing a "variety of issues".

He said the DIA worked closely with the police during Operation Ghost.

"Large amounts of money can be gambled in casinos and does not of itself necessarily raise issues. In the course of our operations, we liaise and co-operate with other enforcement agencies but would not take any action which could jeopardise a current operation."

VIP gamblers at SkyCity casino

"Peter" Van Thanh Tran
Spent $15 million in a 15-month period and his volume of play was $67 million. Overall lost $1.1 million. Also deposited $2.5 million of gaming chips, cheques and cash into SkyCity account in 11 months and withdrew $460,000. Also a loan shark. Pleaded guilty to pseudoephedrine charges.

Da Wen Shao
Banned for loan sharking. In the eight months prior, spent $3.3 million, with a turnover of $13.2 million and total losses of $248,000. Fled New Zealand.

Chuck Lou Tarm. Photo / Supplied

Chuck Lou Tarm
Blamed his drug offending on his gambling addiction. Owed money to loan shark. Sentenced to 12 years and six months in prison.

"Alex" Zhi Tong Li
Known as a "big player". Convicted of pseudoephedrine and methamphetamine charges.

"J" (name suppressed)
Gambled $600,000 of family money and amassed a further $500,000 debts over two years. Banned for problem gambling and arranged deals for loan sharks. Yet to stand trial.

"M" (name suppressed)
Yet to stand trial.

Other gamblers:

Zhi Wei Yang
Had a total "buy in" of $2 million, a turnover of $14 million and total losses of $500,000. Despite this, he was not a VIP. Left New Zealand and still at large.

Felix Lim
Small player who gambled socially. Was targeted by Joe Arama, the undercover police officer, to infiltrate the drug syndicate. Fled New Zealand.

SkyCity lounges served as office for criminal ringleaders

Operation Ghost did not uncover any evidence of drug deals taking place inside SkyCity but this is not the first time the casino has been linked in court to a major drugs operation.

Two ringleaders, Tac Kin Voong and Ri Tong Zhou, spent nearly $20 million at the casino in 12 months while using the VIP lounges as an office to conduct their criminal affairs.

In sentencing Zhou to 15 years in prison in 2009, Justice Rhys Harrison noted that anti-gambling lobbyists had warned the casino could become a "scene for large-scale criminal activity or a meeting place for people who commit serious crimes".

A 2007 report by the Department of Internal Affairs revealed "a significant amount of evidence" that predominantly Asian groups "were frequenting New Zealand casinos for the purposes of criminal networking, money laundering and social gambling using illegitimate funds".

One of SkyCity's VIP gaming salons. Photo / Supplied

Alongside the criminal inquiry of Operation Ghost, police launched a parallel investigation into the finances of the accused in a bid to seize their assets. "This investigation initially focused on a number of VIP members at SkyCity casino, in particular, the flow of money related to drug transactions through the casino," according to an affidavit sworn by Detective Inspector Bruce Good.

"From my experience and numerous intelligence reports and organised crime investigations, SkyCity casino and, in particular, the VIP facilities are a recognised money laundering risk and an environment within which numerous drug distribution groups work, both alone and alongside one another."

More than $20 million in assets were restrained under the Criminal Proceeds (Recovery) Act.

The law essentially forces someone to prove how an asset was paid for - even if they were acquitted on criminal charges.

- NZ Herald

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11453261

Gambling Addicts Ignores Dementia Patient

The consequences of Gambling Addiction are univeral. Regardless of the geography, Gambling Addicts ignore their responsibilities. Sad!

Carer's casino error kept quiet

By Kathryn Powley

 Sunday Aug 19, 2012

 

A health trust whose worker let a dementia patient wander off while she was gambling in SkyCity Casino didn't report the incident to health authorities until confronted.

Waitemata District Health Board learned of the incident only after the Herald on Sunday revealed what had gone on: a caregiver at Rodney North Harbour Health Trust had taken a 62-year-old patient on an outing to the casino, then lost her while playing pokies in the members-only Diamond Room.

Fortunately, the patient managed to catch a bus back to her North Shore home where she was reunited with her husband.

Documents obtained under the Official Information Act show the care worker was chatting to a friend and didn't notice Marie Palman leave.

That detail was only discovered after the Waitemata District Health Board pushed the trust for a full account of the March 5 incident.

A frustrated tone is evident in the emails between the two organisations. After two attempts to outline what happened and what action was taken against the worker - verbal and written warnings and having to work under supervision - the trust's chief executive, Wendy Hawkings, replied to the request for more details with: "We feel your further request for additional specific information about the incident is unwarranted and unnecessary."

The health board's group funding manager, Tim Wood, responded: "It is of concern that you feel that an incident of this nature, where a client with dementia was left unattended and lost in the CBD, was not an issue that needed to be reported."

He said the trust lacked an understanding of its obligations to provide appropriate care.

However, the trust finally provided a detailed response and the health board said the matter was closed.

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10827849

 

 

Greens seek clampdown on illicit casino proceeds

 

 

Greens seek clampdown on illicit casino proceeds

Published: 7:26PM Sunday July 15, 2012

The Green Party has drafted a Bill which would require casinos to pay back the sum of the proceeds of crime they receive through gambling.

The Bill would impose an obligation on casinos to return profits derived from criminal activity and which should have probably been detected.

Green Party gambling spokesperson Denise Roche told ONE News that the money should go back to the people it was stolen from.

VIDEO:
http://tvnz.co.nz/national-news/casinos-could-forced-pay-back-stolen-money-video-4969544


"When problem gamblers are convicted of stealing from their employers, or laundering drug money through the casino, everyone suffers except the casino, who pockets the profits," she said.

"The addict is jailed, and loses their job, their family and friends. Their employer can be ruined. But the casino is better off as a result of the crime. That's not fair," Roche said.

Roche says it is not so much about singling out the casino, but telling them to be a good corporate citizen.

"Casinos have access to advanced technologies for detecting criminal activity and fraud. They have host responsibility programmes that should ensure alarm bells go off when risky gambling occurs."

Roche said while the thief is responsible, in some cases the casino should have been suspicious about where gamblers were sourcing huge amounts of money from.

She pointed to the case of Richard Watson as an example of where the casino could potentially carried out further investigation into where the former accountant was sourcing his money from.
Watson stole $5.4 million from his employer to feed his gambling addiction at SkyCity, spending $50 million over ten years as a VIP high roller.

He went to jail last year, his family was devastated and his employer suffered massive losses, which are expected to never be fully recovered.

In a statement to ONE News reporter Lisa Owen today, SkyCity said it works with the police and other authorities to both identify crime and keep it out of its casinos.

Mana Party leader Hone Harawira is already offering his vote.

"The moral obligation on casinos is because they take so much money out and they know already how much money is coming from poor people and poor communities," he told ONE News.

The National Party could not be reached for comment today, however, the Labour Party said that it is keen to crack down on casino crime in principle and will speak to police and the Serious Fraud Office before it makes a decision on the bill.

The Green Party said its amendment will go into the ballot at Parliament this week.

http://tvnz.co.nz/politics-news/greens-seek-clampdown-illicit-casino-proceeds-4969574




'This amendment Bill is about ensuring they return criminal proceeds that they should never have benefited from," Ms Roche said.

Notes:

Massey University research shows that about 10,000 New Zealanders are engaged in illegal activities because of their gambling addictions. Pokies are the worst culprits.

Problem gambling costs $1 billion annually in bankruptcies, arrests, incarcerations, unemployment, divorce, poor physical and mental health, loss of educational opportunity and suicide.

After a request from the Green Party, the Auditor General is investigating a deal between the Government and SkyCity, that would change the Gambling Act to allow the casino hundreds more pokier machines, and other concessions, in exchange for the casino building a convention centre in Auckland.

Examples of criminal money spent at casinos

- Trusted accountant Richard Arthur Watson stole $5.4 million from his employer to feed his gambling addiction at SkyCity, spending $50 million over ten years as a VIP high roller. He went to jail last year, his family was devastated and his employer suffered massive losses, which will never really be recovered.

- Christian Clifton, a methamphetamine cook who was jailed for life in September 2011, was a VIP member of the high-roller club at SkyCity casino. He gambled $1.3 million in the three years before his arrest.

From the $1.3 million gambled, he had a return of $1.1 million , a loss of around $200,000. That was in effect the price to clean up illegally gained money.

- Herminia Lanuza, an accountant, was jailed in 2010 after stealing $2.7 million to spend as a VIP at SkyCity.
http://www.voxy.co.nz/politics/greens-seek-crackdown-illicit-casino-proceeds/5/129051

Children and Gambling Addiction

SkyCity casino couple plead guilty over children

Published:  Friday June 15, 2012 Source: Fairfax


A couple who left their five children in a van in a SkyCity car park while they gambled have both pleaded guilty to charges today.

The children, whose ages ranged from five months to eight-years-old, were found alone in the casino's car park around 11am on February 26.

They had been locked in the van for about 45 minutes.

At the Auckland District Court today the couple, a man aged 39 and the woman, 29, both pleaded guilty to a charge of leaving a child under the age of 14 without adequate supervision.

They were granted interim name suppression to protect their oldest child who is at primary school.

The couple were remanded on bail to reappear in the court for sentencing in September.

The court heard both parents were currently in programmes. The mother is in an unnamed residential programme and has six months to go.

The father self referred himself to Friendship House where he is doing a stopping violence programme. He has also done four of 18 problem gambling counselling sessions.

After the children were freed from the van SkyCity staff found their parents gambling in the casino.

The children were later placed in Child, Youth and Family care.

http://tvnz.co.nz/national-news/skycity-casino-couple-plead-guilty-over-children-4930718

Parents charged with leaving children in casino carpark

Published:Tuesday April 17, 2012 Source: ONE News

http://tvnz.co.nz/national-news/parents-charged-leaving-children-in-casino-carpark-4836766

No Casino Penalties!

Raking in buckets of money, there are no penalties for abuse by casinos. 

"RESPONSIBLE GAMBLING PROGRAMS" are a joke!

http://tvnz.co.nz/national-news/barred-then-wanted-back-video-4960698

Barred gambler coaxed back to casino

Published: Sunday July 08, 2012
Source: ONE News

A woman legally barred from Auckland's SkyCity is appalled the company is attempting to coax her back to the casino via text messages.

Selina Watson and her husband gambled close to $50 million over 10 years as VIP customers at the casino.

Husband Richard Watson, who worked as an accountant for over 30 years, is serving as six-year jail sentence after stealing nearly $5.5 million from his employers.

SkyCity subsequently trespassed the couple from the casino's premises for two years. They were also barred from Hamilton and Christchurch casinos.

Selina said she was shocked when she received text messages from SkyCity coaxing her to gamble there, which could see her face prosecution in breach of the trespass orders.

"I was really, really angry when I received it," she told ONE News.

"I didn't know what on earth was going on and wondered why on earth are they sending me text messages."

The first message read: "Don't forget $50K sweepstakes draws in 27 July."

A second message said, as a VIP customer, she could collect $60 bonus gambling dollars by visiting the casino.

SkyCity issued a statement apologising to Selina and others who may have received texts, saying it was a computer glitch.




Selina said the text messages brought all of her past grievances with gambling up again.

"It regurgitated absolutely everything I have been through for the last two years."

As VIP customers with loyalty cards, the Watson's $50 million spending was recorded over ten years.

"Anyone that is using a loyalty card is tracked and if it's excessive, something should be said to them."

Selina said she only once received a responsible gambling pamphlet during that time.

Internal Affairs told ONE News the text messages could be in breach of SkyCity's host responsibility.

They encouraged other barred people who have received similar text messages to complain to them directly.

Since Selina's story ran on ONE News at 6, SkyCity said in a statement that it will investigate any breaches of its responsibility programme, which is a condition of its licence.

It said it welcomed contact from anyone who has been banned and may have concerns about being approached.

http://tvnz.co.nz/national-news/barred-gambler-coaxed-back-casino-4960718

Did John Banks ask SkyCity Casino to Donate Anonymously?

Saturday, 05 May 2012, 10:49 pm
Article: Hamish McConnochie

Did John Banks ask SkyCity to Donate Anonymously To His Mayoral Campaign?

By Hamish McConnochieNew evidence has come to light which offers a motive for why John Banks may have asked SkyCity to have donated anonymously to his campaign - namely he didn't want to be seen to be a hypocrite during the Mayoral election campaign.

And did Mayoral Candidate John Banks make a convention centre for Auckland an election commitment to give himself wriggle room to change his position on the pokies after the election?
The new evidence consists of a combination of a little-seen Youtube video posted during the Mayoral campaign (around the time of the anonymous donations from Kim Dotcom), John Banks strident opposition to Casinos expressed in 1997, SkyCity's record in making political donations (it didn't before 2010), and the timing of Prime Minister John Key's intervention in the National Convention Centre policy debate.

Over the past week John Banks has been rocked by claims from millionaire MegaUpload founder and alleged internet pirate Kim Dotcom that he solicited an anonymous donation by asking for a $50,000 donation to be split into two $25,000 cheques.

John Banks' $15,000 anonymous donation from SkyCity was likely made at around the same time.
As yet SkyCity has not revealed why it made an anonymous donation to John Banks, but made a public one to Len Brown (who was subsequently elected as Auckland Supercity Mayor).

John Banks Promises To Back A Convention Centre For Auckland

In a rarely seen YouTube video dated a month before the donation to Kim Dotcom, Banks states that he is "totally committed to bringing an international convention and conference centre to Auckland".
The video is dated May 11 2010, 5 months before the postal ballot Auckland Council election. At the time of posting this article the video has had less than 200 views.

"John Banks has a vision that a national convention centre would be built in Auckland on its waterfront as a part of the masterplanned [sic] development of the Auckland waterfront. John’s vision is that this is ideally located on Bledisloe Wharf, when land is progressively released back to the Auckland public by the Ports of Auckland Ltd. A national convention centre would be a huge economic driver that would create jobs in accomodation, [sic] hospitality, tourism and more. Any such convention centre would require Government assistance for the bulk of the funding." -

John Banks - 2010

Banks comments about the convention centre come just 84 seconds into the campaign video. See John Banks Mayoral Youtube Campaign Page - video title - John Banks on economic development and job creation.
Who Knew About The PM's Pokies Convention Centre Subsidy Plan?
By May 2010, SkyCity was well aware of the convention centre proposal which the Government had put out for consultation in March 2010. (Ref: TVNZ)
And by then Prime Minister John Key's idea of a gambling rules change to sweeten the deal was also already on the table.
According to news reports the Government and Auckland City Council launched a feasibility study for a National Convention Centre in August 2009. Prime Minister John Key dined with SkyCity "bosses" in November of that year. And in April 2012 official papers were released showing that John Key intervened in the policy development process at the end of 2009.

"Official papers released by Labour on Thursday show John Key told officials in 2009 to stop work on the development of an Auckland Convention Centre, and to wait for a SkyCity proposal - details the party interprets as Mr Key's "fingerprints" on the deal." - Radio NZ 19 April 2012

We do not know the date that SkyCity made its $15,000 donation as that detail is not sought in the expenses and donation returns that candidates are required to complete.
However we do know that the twin cheques deposited in a Queenstown bank branch from Megastuff limited are dated 9 June 2010 less than a month after the video of Banks was posted to Youtube.
Political Donations Are Not Business As Usual For SkyCity
SkyCity did not donate to Banks’ 2007 Auckland City mayoral campaign, and its spokesperson Brodie Stewart said his understanding was that the Casino did not have a policy of donating to mayoral candidates – despite SkyCity general counsel Peter Treacy having said his company made donations to political campaigns "to facilitate the democratic process" in 2010.
Brodie Stewart told Scoop that at this stage SkyCity was not planning on donating to mayoral candidates at next year’s election.
Therefore, on the face of it, SkyCity’s donations appear to have been motivated by an intention to help smooth the way for their convention centre proposal.
Did Banks Or Brown Meet With SkyCity In 2010?
Which begs the question did SkyCity meet with Banks and Brown at some point in 2010. Perhaps to "pitch" their convention centre proposal to the candidates. A personal meeting with someone from the campaign teams would seem likely given the size of the donations.
Doubts around the "anonymity" claims made in relation to the casino company's donation to Banks have centred around the fact that SkyCity's $15,000 donation to Brown was publicly declared, while Banks' $15,000 donation was not.
Opportunity
Any meeting between Banks and SkyCity is relevant as if such a meeting did occur, Banks would have had an opportunity to request that any donation made to his campaign be made anonymously, as he is accused of doing by Kim Dotcom.
Motive
Meanwhile Banks prior anti-casino stance (expressed in 1997) may have provided a reason for Banks to make such a request - to avoid being accused of hypocrisy during the campaign period.

"They're wideboys, they're flashboys, they're big boys and they can take it," Banks said in 1997. "Because the little people of this country have been sucked, hung, drawn, quartered, bled by these people in these casinos." TV3 News

By making a convention centre for Auckland a campaign commitment - Banks was clearing himself wiggle room to enable him to subsequently push in favour of SkyCity's bid at council meetings.
Keeping the donation anonymous would protect him from being accused of flip-flopping on his casino views as a result of having received a donation from SkyCity.
Of course we do not know whether at the time he received the donation John Banks was aware of the pokie-machine-rule-change-convention-centre -building-subsidy plan of the Prime Minister.
However he may well have been given that it had by the time of his campaign been in play for more than five months.
SkyCity's Declines To Answer Scoop Questions
Scoop submitted a series of questions to SkyCity which can be read in full below. However the casino company did not answer these questions, instead a spokesman reiterated a prepared statement saying:

"SKYCITY made donations of $15,000 each to Mr Len Brown and Mr John Banks for their respective 2010 Mayoral campaigns. SKYCITY made no donations in 2007 to John Banks’ mayoral campaign."

And What About Len Brown?
SkyCity’s donation is now causing problems for the other candidate in the 2010 Supercity election - Mayor of Auckland, Len Brown. Scoop has also submitted a series of questions to Len Brown this evening.
Recently, Len Brown voted against Cr Cathy Casey’s motion that Auckland Council, "does not support", any law change to allow SkyCity to, "increase opportunities for gambling" in return for a convention centre – effectively a vote in favour of SkyCity's pokie machine rule change proposal.
However Len Brown may now be preparing to change his position.
Today he said he was very concerned about revelations broadcast by TVNZ last night showing that while observations of problem gambling at SkyCity Casino were up over 300% in three years - preventative measures appear to have not increased and the number of problem gamblers banned from the Casino has increased by only 27%.
In an interview with Paul Holmes on TVNZ's Q+A last weekend, Brown did not give a blank cheque to SkyCity for his support for a convention centre, but he did say: "we desperately need that convention centre". The Q+A team summarised his responses to questions on this point as follows:

Brown is expecting the Government to be negotiating well down below the figure of 500 pokies.Brown: "Of course I’m worried about more pokies."
"When the government concludes its negotiation I’ll give my view in terms of whether or not I think that the position they’ve arrived at is appropriate and one that we can actually live with."
Brown believes the harm minimisation measures he wants in place will be listened to by the Government
What does he mean by harm-minimisation? 24/7 officers on the ground looking out for problem gamblers, and a machine to give you a reminder as to how much you’re spending. - Q+A Transcript - Source Scoop.co.nz/a>

(Story continuing....)

*********
SkyCity Convention Centre and Donations Timeline

1996– John Banks speaks out against casino operators in Parliament calling them "wide boys"August 2009 - Feasibility study for a new convention centre
November 2009 – John Key has dinner with SkyCity bosses
Late 2009 - John Key intervenes in the MED process around building a convention center.
February 2010 - Gerry Brownlee instructs officials to stop work and expect a proposal from SkyCity.
March 2010 - Government seeks high level indications of interest in building a convention centre in Auckland.
Sometime in 2010 – SkyCity donates to both John Banks’ and Len Brown’s Mayoral Campaigns. (Note: SkyCity did not donate to John Banks’ 2007 campaign.)
May 2010 – John Banks uploads video stating that he is "totally committed" to a convention centre for Auckland
June 9 2010 - Two cheques for $25,000 are deposited in the Banksie Campaign account by one of Kim Dotcom's employees in Queenstown.
June 2011 - SkyCity is announced as "preferred developer of the New Zealand International Convention Centre (NZICC)" Press Release - source Scoop.co.nz
5 April 2012 - Grant Robertson asks Prime Minister John Key a question about the $15,000 anonymous donation to John Banks from SkyCity - Hansard - Source Scoop.co.nz
April 19th 2012 - Labour Party releases papers showing the idea of the pokies rule change came from John Key.
April 26th 2012 – Len Brown , as Auckland’s Mayor, votes against the motion that Auckland Council does not support increasing gambling opportunities in return for a convention centre.
April 29, 2012 - Len Brown tells Paul Holmes that he is hoping to see far greater efforts to prevent problem gambling at SkyCity Casino.

*********
Questions for SkyCity and Len BrownQuestions for SkyCity

Did any representative of SkyCity engage in a conversation with either Mr Banks, a representative for Mr Banks or any party associated with Mr Banks' 2010 Mayoral campaign, at any time prior to, or after the 2010 Auckland Mayoral election, but before Friday December 3, in which it was discussed that any donation made by SkyCity be made anonymously?If no representative of SkyCity discussed making an anonymous donation to Mr Banks' 2010 Mayoral campaign with any representative of Mr Banks' 2010 Mayoral campaign or Mr Banks, why was the donation made anonymously?
How was a donation by SkyCity to Mr Banks' 2010 Mayoral campaign made? Cheque, bank deposit, or other means, was the donation made in person? Did SkyCity write to Mr Banks prior to the 2010 Auckland Mayoral election advising of your donation before, at the time or after the donation was made?
Did SkyCity intend for its donation to Mr Banks' Mayoral campaign to be anonymous?
Did any representative of SkyCity recommend to any signing authority within SkyCity who authorised the donation to Mr Banks 2010 Mayoral campaign recommend that the donation be made without any accompanying letter or other correspondence which would or otherwise the lack of which would render the donation potentially anonymous and is that standard practice for SkyCity?
Has any correspondence or other communication been received or engaged in with Mr Banks or any representative of Mr Banks' or other person associated with Mr Banks' 2010 Mayoral campaign that expresses thanks to SkyCity for a donation? If so, when and what was said?

Questions for Len Brown

During your campaign for the Auckland Mayoralty in 2010, did you ever meet with SkyCity?During your campaign for the Auckland Mayoralty in 2010, did you ever discuss a potential international conference and convention centre with SkyCity?
During your campaign for the Auckland Mayoralty in 2010, did you discuss a potential international conference and convention centre with any parties other than SkyCity; if so, which?
Are you able to describe the method in which SkyCity made its donation to your campaign?
Did SkyCity communicate its donation to you in either in advance of the donation or afterwards, and if so, did it provide a reason for its donation?

*********Hamish McConnochie is a student at Victoria University with a close interest in politics, he has a column in Salient and in the interests of full disclosure works part time for the Problem Gambling Foundation

http://www.scoop.co.nz/stories/HL1205/S00056/did-john-banks-ask-skycity-casino-to-donate-anonymously.htm

Len Brown - Source: Q+A

Mayor demands more action on problem gambling

Published: Saturday May 05, 2012 Source: ONE News

Auckland's Mayor is calling for more action on problem gambling at Sky City following figures showing a tripling in the number of problem gamblers identified there in the past three years.

Documents prepared by the Auckland casino for the Gambling Commission reveal the number of customers showing signs of problem gambling has gone up from 661 in 2008 to 2582 last year.

Len Brown says he is particularly disappointed because the figures, obtained by ONE News under the Official Information Act, show that in the same period exclusions from the casino increased by only a quarter.

He says he is also concerned by reports that SkyCity's Host Responsibility programme has never been reviewed despite its license requiring that to happen every two years.

"They have to do better if they want to win the support of Aucklanders for the international class convention centre being proposed by the government and SkyCity," Brown said.

"The Auckland and New Zealand economies desperately need the convention centre - we need the investment, we need the extra tourists, we need the jobs. At the moment all that goes to cities like Brisbane.

"However SkyCity has to do more to protect potential victims of problem gambling - greater harm minimisation, better host responsibility, ploughing more money back into the community."

Harm minimisation measures being suggested by the Mayor include harm minimisation officers on site 24/7, pre-paid cards to limit expenditure, harm minimisation screen savers which display before gaming begins and harm minimisation screen savers which activate when a win occurs.

Brown has not given SkyCity a timeframe to implement the suggestions, and stopped short of saying he will withdraw support for the convention centre deal.

Advertisement

In a statement, SkyCity said: "SkyCity is in touch with best practise around the world and consequently is confident its host responsibility is world class and does already in fact include some of the measures Mayor Brown has suggested."

Ban not enforced

One addicted gambler, who had himself banned from the casino, told ONE News he continued to visit and no-one at Sky City ever stopped him.

The gambler, "John", said he also gambled in Sky City's Hamilton casino while under the voluntary ban, sometimes for up to 10 hours.

Over 10 years he said he had lost around $100,000 and had never been approached by a member of staff about his problem.

"They make money out of us," he said.

John said he is taking responsibility for his addiction but people like him should be banned for life from the casino.

Sky City has refused to answer questions.

The Problem Gambling Foundation said the casino needs to detail exactly how it is dealing with the issue.

Your feedback

Comments on the ONE News Facebook page questioned how the casino counts problem gamblers.

Karl Nathan wrote: "...how do they collect this statistic? I assume it comes from those who actually admit they have a problem to a third party, who must report it to them?"
Julius Fa'afua posted that the statistics will only show the gamblers who have reported themselves to rehab agencies.

"The scary thing is that number is actually bigger than whats stated... what about the gamblers that haven't reported their addiction??...we have a problem in this country," he wrote.

Meth of the gambling world

The Australian Productivity Commission estimated in 2010 that 40 per cent of revenue through machines came from people with problems but Ramsey says that is conservative and the foundation believes it is more like 60 per cent.

But even 40 per cent shows SkyCity's business model is dependent on people with problems "and therein lies the issue". The casino is not a happy, bubbly place, he says: "It's a grim, grim, grim, grim, grim place."


Meth of the gambling world
By Catherine Masters
Saturday Apr 21, 2012

The machines have bright colours, fun themes and hypnotic music.

Some punters talk to their machines like a friend and others will hang around until a particular one is free then slide into their favourite spot and feel like they've come home.

It seems ridiculous to sit down in front of a machine and get addicted, says psychologist Dr Sean Sullivan, but people do it all the time.

Sullivan was a founding member of the Compulsive Gambling Society and is now part of a Ministry of Health contract to train the professionals who counsel problem gamblers.

And he says of all forms of gambling, pokies are the worst - they are the methamphetamine of the gambling world.

Sullivan says even if you play only once a week you've got a one-in-three chance of developing a gambling problem, so don't do it on a regular basis or it will start taking control of your life.

The machines are programmed to pay out less than you put in so though you might have small wins which keep you hooked, he says make no mistake, over time you will lose all your money.

Another problem gambling expert the Weekend Herald spoke to described pokie machines as parasites that have evolved based on the ones before which made the most money.

They are seductive to our ancient hunter/gatherer human brains which are neurobiologically vulnerable to addiction, says Dr Philip Townshend, a psychologist who is research director for the Problem Gambling Foundation.

Countries all over the world have experts on problem gambling and pokies are generally top of their lists as the most addictive form.

This week SkyCity's CEO Nigel Morrison, claimed that "pokie machines are less harmful to the public than Lotto tickets and claims of social harm are out of proportion to reality".

This was in response to the furore over the Government's negotiations with SkyCity for concessions - including up to 500 extra pokie machines at its Auckland casino - in exchange for a $350 million national convention centre.

However, Canadian expert, Professor Kevin Harrigan from the University of Waterloo, told the Weekend Herald any initiative to increase the number of machines was a major concern.

"More harm is caused by the negative consequences associated with pokies than from any other form of gambling."

Harrigan spoke in Australia in 2010 where a huge debate is also raging over gaming machines. Adelaide has faced an offer from SkyCity, which also owns the casino there, for concessions in return for contributing to the redevelopment of the city's riverbank precinct.

But whereas South Australia Treasurer Jack Snelling told them they were dreaming, on Wednesday our Prime Minister, John Key, said he had made the convention centre offer to SkyCity.

Harrigan has analysed, among other things, what he calls "losses disguised as winnings" on pokie machines.

When a player puts in, for example, $3.75 and wins $2.25 the machine lights up and gives graphic and sound rewards, but actually there is no win, just a $1.50 loss.

His research has found the number of losses disguised as winnings is 180 per hour and that 18 per cent of spins are losses disguised as wins - 68 per cent are just losses.

Dr Sullivan says each spin ranges from 3.5 to 5 seconds and there are regular "near misses". When people see what they think is a near miss they think "I'm getting close".

They are not, because each spin is random, but even when a problem gambler has lost all their money, he says, they will still sit there staring at the machine.

The total concentration involved in watching the spinning and winning and free turns means not only do other problems disappear but so does time.

People will say they thought they were only playing there for an hour but in reality, five hours had gone past.

Sullivan finds it hard to fathom how Key could consider a deal with Sky City when he has a Ministry of Health and a Department of Internal Affairs working in accordance with the Gambling Act of 2003.

He points out that when the Act was passed it was recognised around the world as forward-thinking because instead of looking at gambling as a way to support the economy, it started looking from a harm minimisation point of view, and with more controls.

"And then suddenly we get it reversed around by this promise to go and say 'well the economy of scale says that we should reward you and let's forget about the problems that come out of that'."

Sullivan says the Act specifies we should have no more than the six existing casinos, based on the idea that we have too many casinos for the size of the country, and three of those are world-size.

"To suddenly add another up to 500 machines - which are bigger than three of the six casinos - in itself is like adding at least another sizeable casino, and that makes a farce of the law."

SkyCity has casinos in Auckland, Hamilton, Christchurch and Queenstown, plus two in Australia, in Adelaide and Darwin.

Takings from Auckland alone blitz all the others.

In the latest half-yearly report, for the six months from end of June 2011 to end of December 2011, Auckland revenue was $268.9 million; revenue from Australia was $187 million.

Though the Australian SkyCity casinos are smaller and Australia has a proliferation of gambling establishments including a thriving club scene, New Zealand Problem Gambling Foundation head Graeme Ramsey says Auckland takings probably demonstrate the "great take-off" in gambling in the late 1980s which he says was sparked by the legalisation of pokie machines.

In 1986 New Zealanders lost $221 million through gambling, he says. By 1996 that had grown to $816 million and in 2006 it had more than doubled again to just under $2 billion.

Half of that, Ramsey says, is from pokie machines.

The Australian Productivity Commission estimated in 2010 that 40 per cent of revenue through machines came from people with problems but Ramsey says that is conservative and the foundation believes it is more like 60 per cent.

But even 40 per cent shows SkyCity's business model is dependent on people with problems "and therein lies the issue". The casino is not a happy, bubbly place, he says: "It's a grim, grim, grim, grim, grim place."

A few years ago Otago University's National Addiction Centre put out a paper explaining that addiction was unique to the human species and resulted from ancient genes interacting with modern human environments.

The genes originate from at least the time of the Ordovician period (500 million years ago) when fish evolved with the capacity of habit formation.

Modern human advances - such as tailor-made cigarettes and electronic gaming machines - can provide a compelling stimulus to an integrating structure in the reptilian part of the human brain which initiates automatic responses to seek and consume, the paper said.

If continued regularly these compelling stimuli spark the development of compulsive behaviour in the individual.

Dr Phil Townshend says the neurobiological pathway which gambling excites is the same one that is excited by alcohol and opiates (it's called the opioid pathway).

"And probably the biological basis of this particular pathway is around being a hunting and gathering species.

"You can see how that really fits in with gambling addiction where you're putting a lot of time and persistence into activity, a bit like you might if you were fishing or if you were hunting.

"We're really good at that; that's how we took over the planet and it's a pretty universal pathway because the humans who weren't keen on being a hunting and gathering species aren't with us anymore."

One of the things about the pathway, he says, is that there seems to be a metronomic (mechanically rhythmic) component and this has clearly been found to be in the two-to-10 second timeframe for the human brain.

A pokie machine spinning every three and a half seconds fits firmly within that timeframe, so though people might like to think addiction only happens to the vulnerable members of society, Dr Townshend says the truth is that, with exposure, any one of us can become addicted.

Are you in trouble?

New Zealand psychologist Dr Sean Sullivan devised this test about gambling.
If you answer yes to four or more questions, gambling may be causing you problems.

1 Sometimes I've felt depressed or anxious after a session of gambling.
2 Sometimes I've felt guilty about the way I gamble.
3 When I think about it, gambling has sometimes caused me problems.
4 Sometimes I've found it better not to tell others, especially my family, about the amount of time or money I spend gambling.
5 I often find that when I stop gambling I've run out of money.
6 Often I get the urge to return to gambling to win back losses from a past session.
7 Yes, I have received criticism about my gambling in the past.
8 Yes, I have tried to win money to pay debts.

Pokie machines ruined my brother

Pokie machines ruined my brother
By David Fisher
Saturday Apr 21, 2012

One man's pursuit of success on poker machines is laid bare in a handful of bank statements opened by a distraught family member.

They show the Auckland tradesman earned $32,400 in 14 weeks, but spent $30,300 on what his family believe to be gambling.

"He's out of control," said the man's brother, who the Weekend Herald agreed not to name.

"I don't know what's happened to him. He's changed. It is just a complete personality change."

The man came forward to offer the bank statements as evidence of the dark side of gambling addiction.

He was prompted by debate over negotiations between the government and SkyCity, which owns casinos in Auckland, Hamilton and Queenstown.

SkyCity proposes to build a $350 million convention centre in Auckland in return for gambling concessions, including being allowed to have up to 500 more poker machines at its casino in the central city.

"I'd like to see all the pokies scrapped," said the tradesman's brother. "I'd like to see the whole lot disappear."

The man said he had begun to suspect his brother had a hidden part to his life after the pair came to share a house. He began to see his brother's car parked outside pokie venues and feared he had a gambling problem.

He took to spying on his brother playing poker machines. He took along other family members who had loaned the tradesman money.

Confronted, his brother said: "I'm only having a little flutter."

Eventually, the tradesman's lifestyle became more erratic and his efforts to get money more insistent and overt. His brother sought advice from gambling support groups.

Their advice was: "Get him out of the house - he'll destroy the family."

The man said his brother spent a period sleeping in a car. He moved back in briefly but was asked to leave again. He said he believed his brother was now sleeping in a car again.

The man said he knew his brother had a good job and earned plenty of money. It was puzzling trying to understand why he had to resort to sleeping in his car.

He said opening his brother's bank statements answered the question - he now believed the money was spent almost entirely on gambling.

The statements show large amounts of spending at pubs with gambling machines. In some cases, the tradesman withdrew almost $1000 in an evening. In the case of SkyCity, the figures were higher.

There is a clear pattern. Wages were paid into the account each fortnight. The balance was healthy, reflecting the $2300 the tradesman earned each week.

In almost all the statements for the past year, it took only two days to empty the account. Sometimes it took one day - never longer than three. The brother said the tradesman had broken off relationships with women, who also complained he owed them money.

It was also beginning to emerge that he was quoting on trade work, accepting deposits and then not doing the job.

The brother said some would-be clients had called wanting their money back.

"I don't think people have any idea what a problem gambler does. People should know about this," he said, leafing through the bank statements.

The brother, who votes National, said he was horrified the Government was using poker machines as a bargaining chip. "I certainly won't be voting National next time if they let this through."

Problem Gambling Foundation spokeswoman Andree Froude said the host responsibility programmes of pubs, clubs and casinos were critical in helping problem gamblers.

The programmes placed an obligation on those overseeing pokies to be alert to people displaying signs of problem gambling and to ask if they needed help.

"People caught up in problem gambling do what they can to cover their tracks so that members of their family don't know what they are doing or what they are spending their money on."

Green Party co-leader Metiria Turei said SkyCity could do more to identify problem gamblers by using pop-ups on pokies or introducing tools to help punters understand what they had won or lost.

"[Prime Minister] John Key says SkyCity is paying the full cost for the convention centre. No they are not. This man [the tradesman], and hundreds like him, are paying the full cost."

Community Gaming Association chairman John Burke said it was important to remember the machines served as an entertainment outlet for many people who used them.

"They enjoy it. They go home at the end of the night, win or lose, feeling like they have had a good time."

He said gambling profits from clubs and pubs went back into the community. "The gambling that occurs in casinos ends up as profits for shareholders."

SkyCity did not respond to calls for comment or an invitation to discuss its host responsibility programme.