Crown Resorts inquiry flags shake-up of casino rules
A number of major reforms to how casinos are regulated in NSW have been raised at a state inquiry, including requiring individuals to register to gamble.
The way casinos are regulated in NSW are set for a major shake up, with an inquiry hearing that the state should abandon its lax “co-regulatory” model in favour of a more “prescriptive model” used in Singapore and including potentially requiring gamblers to register to play.
On Friday, the final oral evidence hearing of the NSW Independent Liquor and Gaming Authority’s inquiry into the suitability of Crown Resorts to operate the Barangaroo Casino in Sydney heard from Rose Webb, Department Secretary of the Better Regulation Division at the NSW Department of Customer Service.
Both the counsel assisting and commissioner Patricia Bergin sought further understanding of the current regulatory regime and put to Ms Webb their thoughts on what could be improved after months of investigation into Crown’s shortcomings in the area of anti-money-laundering and risk management.
Ms Bergin asked whether “recognition of gambling patrons by identification with cards...and various other prospects of making sure people don’t money launder” would require legislative change.
“One avenue to try and stop it is a really rigorous recognition of the gambler and the fact that one would want to trace the transactions, not from just the problem gambler point of view, but from the money launderer point of view,” she said.
Counsel assisting Nicholas Condylis said that the inquiry closely examined the Singaporean casino regulatory regime, which he said stands as “a neat contrast” to NSW’s co-regulatory system due to its “prescriptive” approach.
In particular, Mr Condylis highlighted a Singaporean clause where the regulator scrutinises junket operators “having regard to the character, honesty and integrity of that applicant.”
He asked Ms Webb whether NSW should adopt a similar clause in regulatory agreements the government makes with casinos, noting that current agreements with the Star Casino only disallow dealings with criminals.
“I absolutely agree - as we previously discussed - that this would be a good test,” Ms Webb replied, confirming that her department was looking at reviewing arrangements with the Star Casino.
“Definitely my understanding is that a review will take place, there’s some consideration being given to what should be reviewed.”
Ms Webb also agreed with Commissioner Patrica Bergin that suspicious transactions should be simultaneously reported to the casino regulator and Austrac, similar to the Singapore model.
She also said that her department was looking to “refresh” an MOU her department had with Austrac regarding the sharing of information that could be useful for liquor and gaming regulation.
Mr Condylis provided a history of the structure of the independent liquor and gaming authority, noting that within five years it had been reduced from “a specialist agency that has control of its own employees and divisional staff” to an agency staffed primarily by employees of Liquor and Gaming NSW.
“There was a process of changing them from being a separate staff agency to being generic public service employees,” Ms Webb explained, saying the government consolidated the bodies under one department for efficiency reasons.
“I understand that the theory was that many businesses are regulated by many different entities, and there’s an opportunity if you put regulatory agencies together, you can create efficiencies.”
Ms Bergin stated a clear preference for a clearly independent and distinct casino regulator, pointing to the structure of casino regulation in the US State of Massachusetts.
“In Massachusetts there are five commissioners who are full-time on the gaming commission there and they are appointed by the governor and attorney general, they have strong powers, and they are impenetrably away from government,” she said.
“So you have a body to which people can say: ‘that’s a regulator, and that is a revered and respected regulator.’”
The inquiry will reconvene on November 4 to take submissions from the counsel assisting and will release its final report on February 1 next year.
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