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It’s an extraordinary move by one of the most powerful lobby groups in the country that could end up backfiring and raising attention about the problems it was hoping to hide. 

ClubsNSW is today seeking a gag order against former employee and whistleblower Troy Stolz, who has spoken out against the “alarming” scale of money laundering in pokies rooms at local clubs and pubs across the state. 

The lobby group is trying to stop him from speaking to journalists while it sues him for blowing the whistle on alleged money laundering through the state’s poker machines. 

Xenophon Davis, the law firm run by former South Australian senator Nick Xenophon and ex-journo Mark Davis, is now taking on the case in a sign of the growing momentum behind the whistleblower’s cause. 

“It’s an honour to represent Troy Stolz, a person of great courage, who is up against the power of gambling and lobbying behemoth that is ClubsNSW,” Xenophon told Crikey. 

The legal battle between Stolz and ClubsNSW has been winding its way through the federal court for more than a year via multiple actions between both parties. 

But the dramatic intervention risks elevating Stolz to a more prominent voice than when he initially spoke out last year. 

Stolz worked for ClubsNSW as an anti-money laundering compliance auditor. Early last year he revealed the scale of money laundering in pokies rooms at local clubs and pubs.

In March 2020, Stolz took legal action against ClubsNSW alleging defamation, bullying, sham contracting, underpayment and other breaches of the Fair Work Act.

ClubsNSW took separate action against its former employee, accusing him of breaching a confidentiality agreement by giving a ClubsNSW board paper to independent MP Andrew Wilkie.

That paper suggested money laundering compliance rates were as low as 5-10% among ClubsNSW members. 

A lot has changed since last year, when Stolz first raised the alarm. ClubsNSW is no doubt watching what has happened to the biggest name in Australian gambling, Crown, and pondering what additional scrutiny of its money laundering compliance might mean for its future. 

It’s this level of scrutiny that Stolz claims has triggered the gag order. 

“They want to shut down the communication because they are worried about what is happening in the casinos. It’s the same industry. They know they are exposed and will be looked at next,” he told Crikey. 

A ClubsNSW spokesperson told Crikey: “Given the matter is currently before the court, it would be inappropriate for us to comment.” The lobby group has previously said Stolz had not made any whistleblower disclosures under the law. “While he has also previously raised a claim for parliamentary privilege in relation to some documents, he later withdrew this claim,” it previously said in a statement. 

Either way, if ClubsNSW was hoping to get less attention over the case, it may have failed.