Packer asked why gambler was not at Crown

John Williams, 29, Crown's chief operating officer and the stepson of the casino developer Lloyd Williams, took Mr Packer's call, the Victorian Supreme Court was told.

"Mr Packer asked me whether I knew anything of this gentleman, and he inquired ... why he's not playing at Crown," Mr Williams said.

Mr Williams emailed his colleagues to relay that the gambler, Harry Kakavas, had just "dropped" three or four million in Las Vegas and he asked what would be needed to allow him back into Crown.

Mr Kakavas, a Melbourne property developer who found success on the Gold Coast, had been banned from Crown for several years. He had also previously banned himself from Crown for a gambling addiction. But Mr Packer's friends were talking up Kakavas in 2004. Among them were Ben Tilley, and the fellow Gold Coast property developer Brian Ray, who was later killed in a light plane crash at Mount Hotham.

Mr Williams also knew Mr Kakavas personally. He said the pair played pool together at the Men's Gallery in the mid 1990s after Mr Kakavas started betting at the temporary casino.

Mr Williams told the court yesterday that he could not recall whether it was Mr Packer who informed him of Mr Kakavas's losses in Vegas. He said he had received several calls around the same time, including from Peter Fox, the son of the trucking magnate Lindsay Fox.

Mr Williams's email to colleagues marked the start of a process for Mr Kakavas's return. But Mr Williams said Mr Packer did not want Mr Kakavas back at Crown once he learnt about his history in that same phone call.

Mr Williams said he told Mr Packer that Mr Kakavas was banned from Crown because he had previously spent time in jail, and "Mr Packer accepted that".

Mr Williams denies he chased Mr Kakavas. Mr Kakavas wanted to come back to Crown, he said, and he was happy to accommodate him, so long as others at the casino were satisfied.

Mr Williams asked Mr Kakavas for a letter requesting readmittance and a psychological report clearing him of any gambling addiction. In an email he told colleagues: "I've now got Harry to agree to conditions that Bill [Horman] is happy with that won't come back to bite Crown."

The psychological report, provided by a Gold Coast psychologist rather than any of the Melbourne specialists who had treated Mr Kakavas for a pathological addiction, begins with the qualifying statement that she could not properly assess his suitability for a return to Crown because she had not met him before.

"I thought the letter was fine," Mr Williams said. The qualifying statement was just one sentence among 30, he said.

Mr Kakavas began gambling at Crown again in June 2005 and had turned over $1.5 billion by August 2006. He is suing Mr Williams, Crown and its chief executive, Rowen Craigie, for $35 million, including the $20 million he ultimately lost. He says Crown knew he had a gambling addiction and lured him back.

Crown is countersuing Mr Kakavas for the $1 million he owes the casino.

The trial continues next week.