KEY POINTS:
Loan sharks are luring gamblers by approaching them as they ponder their losses inside the casino, Parliament was told yesterday.
Green MP Sue Bradford said gamblers at the SkyCity casino in Auckland were borrowing as much as $10,000 a time to continue playing.
In some cases, she said, gamblers were introduced to the loan shark by a casino dealer.
The Government has ordered an investigation into allegations of loan sharking and financial irregularities at Christchurch Casino.
But the Green Party wants a wider public inquiry. Speaking under parliamentary privilege, Ms Bradford told MPs there were believed to be 10 loan shark groups working at SkyCity in Auckland, both on the ground floor and in the VIP lounges.
"It has been reported to me that the minimum loan in the VIP area is $10,000," Ms Bradford said.
Those who fell behind in repayments faced threats and some women had even been forced into prostitution to work off their debt, she said.
A spokeswoman for SkyCity said last night that the gaming business was one of the most highly regulated in New Zealand and the Auckland casino operated under tight internal controls.
"Any individual found to be practising loan sharking would be barred from the premises for a two-year period for undesirable behaviour," she said.
"SkyCity would not tolerate this behaviour, we don't want loan sharks in our business.
"We work closely with the Department of Internal Affairs, and were we to become aware of the presence of loan sharks, we would inform the DIA about these people."
Ms Bradford told Parliament that people who had borrowed from loan sharks were at risk if they spoke out.
"I have also been told about young students being recruited as agents for loan sharks, or even being forced to commit serious crimes - some even suggested by these money lenders - to raise money for their gambling debts."
Some of the victims owed hundreds of thousands of dollars, and were too frightened to seek help for fear of reprisals against themselves or their families.
"What is needed is a thorough, public investigation that sheds light on this dangerous underworld, not the meek new rules promoted by the Government," she said.
The new rules require small lenders to be registered and belong to an approved professional body.
Ms Bradford said the rules would do little to stop loan sharks preying on vulnerable victims.
Christchurch Casino board chairman Barry Thomas has previously described allegations of loan sharking and financial irregularities at his casino as "absolute rubbish".
He said last night that the inquiry could expect full assistance from casino staff and he looked forward to a speedy resolution.
Internal Affairs Minister Rick Barker said Ms Bradford's wider allegations would also be looked at if information was provided.
