WA casino probe costs trebled its budget

The final cost of Western Australia’s royal commission into Crown’s Perth casino blew out to more than three times its original budget.

The Crown casino in Perth. Picture: NCA NewsWire / Sharon Smith

The final cost of Western Australia’s royal commission into Crown’s Perth casino blew out to more than three times its original budget, with the state government now weighing up whether to make Crown contribute to the cost.

The year-long inquiry into the casino – called by the WA government last year following damning revelations from NSW’s Bergin inquiry into Crown’s suitability to hold a casino licence in that state – cost $16.7m, well up from the initial $5m set aside for the process.

The final cost of the royal commission was listed in the annual report filed by the Department of Premier and Cabinet in September, with the overrun attributed to the inquiry’s extended duration.

But the budget for the inquiry had already been revised upwards after the royal commission’s deadline was extended from Nov­ember 2021 to March 2022.

The forecast budget was increased to $8.7m shortly after the extension was announced.

Racing and Gaming Minister Tony Buti told The Australian in a statement the cost of the royal commission reflected the considerable legal resources needed.

“This was an extremely demanding task, requiring dedication from many,” Mr Buti said.

“A plan to recoup costs is under active consideration.”

WA had until now not publicly flagged any intent to make Crown contribute to the cost of the royal commission.

NSW’s Independent Liquor and Gaming Authority struck a deal last year that saw Crown agree to contribute $12m towards the cost of the Bergin inquiry.

ILGA also earlier this year launched legal action against Hong Kong-based Melco Resorts and Entertainment, seeking $3.7m from the casino heavyweight towards the inquiry’s costs.

WA would likely be able to recoup only a portion of the royal commission costs from Crown, given its inquiry focused extensively on the structure and operations of the government regulator rather than Crown itself.

The WA royal commission followed revelations that hundreds of millions of dollars had been laundered through the Perth casino by Asian crime ­syndicates.

The increase in the cost of WA’s royal commission mirrors that in Victoria. That inquiry, led by former Federal Court judge Raymond Finkelstein, was originally expected to cost between $5m and $7m but Victorian budget papers show the inquiry cost more than $20m.

NSW’s Bergin inquiry ran for 18 months, while the Victorian and WA royal commissions – which both leaned heavily on the findings from the NSW inquiry – ran for eight months and one year respectively.

WA’s royal commission echoed the findings of similar inquiries in NSW and Victoria when it determined that Crown and its subsidiaries were not suitable to hold a gambling licence.

The WA inquiry stopped short of revoking the licence altogether, instead detailing a plan to install an independent monitor to oversee the casino’s remediation work over the next two years.

Crown, which has since been acquired by US private equity group Blackstone, will be required to cover the cost of that regulator.

The WA royal commission recommended changes to the state’s gambling regulator after the inquiry identified several issues and conflicts of interest between the casino, the Department of Local Government, Sport and Cultural Industries, and the Gaming and Wagering Commission.

WA’s royal commission heard from 69 witnesses over 57 days of public hearings. Its final report was 991 pages long and made 59 formal recommendations.