Crown Resorts has rejected sensational allegations tabled in federal parliament that the casinos operator purposely tampered with poker machines to increase losses for gamblers.
Crown shares dropped sharply on Wednesday after independent MP Andrew Wilkie, using parliamentary privilege, tabled video evidence from former Crown employees accusing the company of misconduct at its Melbourne casino.
The whistleblowers allege Crown Casino deliberately tampered with poker machines to increase gamblers' losses while turning a blind eye to drug use and domestic violence, the parliament was told.
The claims also included allegations of attempts to avoid scrutiny of large transactions by financial regulator AUSTRAC.
Mr Wilkie called on the Victorian and federal governments to investigate.
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In a statement to the ASX on Wednesday, Crown rejected the allegations and called upon Mr Wilkie to hand to authorities all the information he had relating to the matters alleged.
"Crown Resorts rejects the allegations made today under parliamentary privilege by Mr Andrew Wilkie MP, as reported in the media, concerning the improper manipulation of poker machines and other illegal or improper conduct at Crown Casino in Melbourne," Crown said.
Crown shares finished 51 cents, or 4.3 per cent, lower at $11.24 on Wednesday, after slumping to $10.80 during the day.
CMC Markets chief market strategist Michael McCarthy said investors were clearly concerned about the allegations made against Crown, but the drop, even though sharp, does not indicate panic.
"The test will come over the next few days," Mr McCarthy said.
"If they (the shares) fall to around the $10.70 mark, that could be a sign that there is a panic developing and that the stock will head lower."
Mr McCarthy said the allegations are untested but if they were proven they could have implications not just for Crown's Melbourne operations but also for Crown's casino operations in the rest of Australia and around the world.
The allegations, if proven, would run against the probity requirements of casino licences.
Mr McCarthy said Mr Wilkie is a known opponent of poker machines, which may be moderating the investor response to Crown shares at the moment.
"Clearly there is an interest here (on Mr Wilkie's part) to paint the worst-case scenario," Mr McCarthy said.
"Having said that the allegations are startling.
"The caution being expressed by the share price movement reflects the uncertainty that these allegations bring about."
Victorian Gaming Minister Marlene Kairouz is meeting with the Victorian Commission for Gambling and Liquor Regulation over the allegations.
