Western Australia Legislators Move to Beef Up Gaming Regulations

Western Australia is updating its gambling laws, and from the look of things, the regulatory changes will be stricter on casino operators that will fail to toe the line. The definitive move to introduce the reforms came on Wednesday, the same day New South Wales announced that it would begin implementing some new gaming measures as early as August.

An independent industry watchdog will be created to oversee and enforce the new legislation, granting it several powers, including the ability to impose penalties of up to $100 million. The said penalty cap is a staggering 1,000% increase from the $100,000 in the Casino Control Act of 1984.

Restoring Integrity to the WA Casino Industry

The primary reason cited for proposing the upcoming regulations and increasing the penalties is the Perth Casino scandal. Investigations revealed criminal activities like money laundering and involvement with crime-linked Chinese junkets in the Burswood Complex. Additionally, the scandal exposed cases where Perth Casino failed to protect problem gamblers, all courtesy of the casino’s operator, Crown Resorts Ltd.

The Western Australian Royal Commission deemed Crown Resorts unfit to run the casino but let the casino continue to operate. The Commission recognized that revoking the operator’s license would only be more detrimental as the livelihood of over 5,000 employees would be compromised. Instead, the Royal Commission went with the option of carrying out a 2-year remediation process with The Crown Resorts’ cooperation.

 An independent monitor will be assigned the task of supervising Perth Casino’s remediation over the coming two years. Meanwhile, Crown Resorts is now under acquisition by private equity bigwig Blackstone, in a transaction estimated to cost $6.3 billion. After getting a go-ahead from the Federal Court and regulators in WA, NSW, and Victoria to complete the buyout, Blackstone will be running all Crown Resorts casinos henceforth.

A 996-page report presented to the government in March found the current gaming commission (the Gaming and Wagering Commission) and the Department of Local Government, Sport, and Cultural Industries culpable. The pair were not vigilant enough in monitoring The Crown’s compliance, and thus, they let the crimes persist for years before coming to light. The report also contained 59 recommendations, including the proposal to disband the current regulatory frameworks and pave the way for newer players.

WA Gaming Scene Plagued With Scandals

The Victorian Gambling and Casino Control Commission (VGCCC) issued a statement stating that the move to approve Blackstone to run Crown Resort’s Melbourne Casino was arrived upon after months of investigating the group. The Commission reported that its specialist team found Blackstone suitable to run the casino and that if the company fails to meet its stringent conditions, VGCCC will act accordingly.

Blackstone has since shown confidence that it will be able to steer the gaming brand beyond its past and the questionable conduct it has become known for in the region. Another operator that came under review after media allegations in late 2020 is Star Entertainment which was also found guilty of fraud, money laundering, and criminal infiltration after having offered to take over Crown earlier.

Like Perth Casino, The Star Sydney had also been hosting junkets from the vast Asian market, including a notorious one financed by renowned Macau billionaire Alvin Chau. Chau is a junket kingpin with ties to the 14k triad society, and his trial has been adjourned to September. Suncity Macau Casino, owned by Chau, was also found to have had dealings with Crown.

Western Australia Minister for Racing and Gaming Dr. Tony Buti has stated that the rules are a response to the Royal Commission and will see the casino operator held accountable. He remarked.

Quote

“Greater integrity is not optional. The WA government will have a new independent monitor and much higher penalties to ensure the highest standards are upheld.”

He also mentioned that the bill has provisions that will assist the government in recovering the cost of the independent inquiries from guilty operators. Dr. Buti revealed that after passing the gaming legislation, other state laws would also be updated to fit into the 21st century.

Fresh Blood to Assist With Regulatory Revamp

In April, the WA state government began taking measures to repair the mess that was Perth Casino. One of the first and most significant steps it took was dismissing two Gaming and Wagering Commission members and appointing two new ones: Dr. Michael Schaper and Colin Murphy.

The duo was specifically picked to help tighten the state’s hold on the regulatory framework as it prepares to pass more modern laws owing to their extensive experience across different industries. Murphy previously served as the 18th Auditor General of WA and was recently a Commissioner on the Perth Casino Royal Commission. On the other hand, Schaper has worked as a company director, board chair, and consultant on economic policy and development. Shaper also served the Australian Competition and Consumer Commission as the deputy chair.

Meanwhile, Minister Buti is tasked with ensuring that the GWC stays active in enforcing the set regulations. Victoria and Queensland are also considering some gaming regulation bills that may come into effect in the coming months. The CLLA bill tabled to Victorian legislators in May is an update to the existing legislation that dates back to 1999, 2003, and 2011. The Queensland proposed law was inspired by the Crown saga even though the operator did not have a casino in the said state.