NSW police crack down on illegal casinos as Sydney’s underground gambling grows

Australian police have reportedly cracked down on illegal gambling, raiding five underground casinos in New South Wales (NSW) over the past year. According to the Daily Telegraph, stricter gambling regulations might be pushing more people toward these hidden, unregulated dens.

One raid was sparked by a panicked gambler who called authorities, claiming he was being held hostage because he couldn’t pay his debts. When police arrived, they found a full-blown illegal casino, complete with gaming tables, hostesses, and food service.

Gambling experts warn that upcoming changes to legal casino cash limits to combat money laundering could drive even more gamblers to underground venues. The country’s major casino operators, Crown Resorts and The Star Entertainment Group, are expecting to drop this limit from AU $5000 ($3,175) to AU $1000 ($635).

‘No room for illegal backstreet casinos’

NSW Minister for Gaming and Racing, David Harris, insists the government has strict controls in place to keep crime out of the gambling industry and says there’s no room for illegal backstreet casinos.

Cited by the news outlet, Harris said: “NSW Police take a zero tolerance approach to unlawful gambling operations.

“These unlicensed venues are illegal, have no checks and balances, and people should not gamble in them.”

Out with the gambling signs, in with the welcome signs.

We promised to get rid of these gambling ads outside pubs and clubs.

And that is exactly what we're doing. pic.twitter.com/Bekk28di2S

— Chris Minns (@ChrisMinnsMP) August 15, 2023

Late last year, NSW Police are said to have arrested several people on charges of kidnapping, intimidation, and extortion after a gambler claimed he was forced to pay off a $20,000 debt. He told detectives he had lost the money at an illegal casino operating out of a luxury apartment in the Greenland Centre, located in Sydney’s central business district.

However, this wasn’t the first time police had been called to that same building. Just a year earlier, a concerned friend called the police, saying his friend had been kidnapped after losing thousands at the tables and being unable to pay up.

After police rescued him, he refused to cooperate, likely because he was an illegal immigrant, and is believed to have fled overseas.

Illegal gambling on the move around Sydney

Over the past two years, there have been at least eight reports of illegal gambling in a tower in Chinatown. The underground casinos are believed to be constantly on the move, making them harder to track.

Illegal gambling dens have reportedly been thriving not just in Chinatown but also in suburbs like Hurstville, Campsie, and Eastwood. Gamblers are using cash and electronic transfers to Bitcoin to place their bets, making it even more challenging for authorities to crack down.

Sources say high-stakes poker games are popping up all over the city, hosted in private homes and luxury hotel suites. The games come with a large price tag as buy-ins start at $50,000. To keep players comfortable, hostesses serve free food and drinks, making the experience feel more like a VIP casino than an underground operation.

Earlier this month, U.S. casino giant Bally’s made an AU $250 million ($158 million) bid for just over half of Star Entertainment’s shares, as the struggling Aussie casino operator scrambles to stay afloat.

Star, the country’s second-largest casino operator, has been hit hard in recent years, facing money laundering scandals, regulatory crackdowns, massive fines, and a management shake-up. COVID-19 border closures also dealt a major blow to business. Drowning in debt, Star is exploring all options to avoid bankruptcy.

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