Answers to Questions

Gambling Regulation

In reply to the Hon. C. BONAROS (25 May 2021).

The Hon. R.I. LUCAS (Treasurer): The Attorney-General has advised:

The government has sought further advice from the Liquor and Gambling Commissioner in relation to whether an independent inquiry should be conducted into SkyCity Adelaide's operations.

On 7 June 2021, SkyCity Entertainment Group Limited made a market disclosure to the ASX and NZX that AUSTRAC (Australian Transaction Reports and Analysis Centre) has commenced a formal enforcement investigation into SkyCity Adelaide.

AUSTRAC is the federal regulatory agency that monitors transactions to detect and respond to criminal abuse of the financial system to protect the community from serious and organised crime including money laundering.

AUSTRAC has identified potential serious noncompliance by SkyCity Adelaide with its obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act and Anti-Money Laundering and Counter-Terrorism Financing Rules, relating to:

ongoing customer due diligence;

adopting and maintaining an anti-money laundering/counterterrorism financing program; and

compliance with Part A of an anti-money laundering/counterterrorism financing program.

The commissioner welcomes the action taken by AUSTRAC to investigate SkyCity Adelaide and determine whether there have been such breaches.

AUSTRAC is the agency responsible for investigating anti-money laundering and counterterrorism financing. It has the relevant expertise and resourcing and is clearly the most appropriate agency to investigate SkyCity Adelaide's conduct.

AUSTRAC has commenced formal enforcement investigations in relation to multiple Australian casinos.

In relation to other states, only Victoria and Western Australia have commenced royal commissions. Crown operates the casinos in both of those states. Those royal commissions are only concerned with the conduct of Crown casinos, which were the subject of findings in the Bergin report.

AUSTRAC has the expertise and responsibility to investigate breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act.

It is appropriate for AUSTRAC to continue with and complete its investigation into SkyCity Adelaide.

In all of those circumstances, the government does not consider it appropriate, at this time, to commence an independent inquiry in addition to that which is being conducted by AUSTRAC.

Shortly after the release of the report by the Hon. Patricia Bergin SC into the suitability of Crown Resorts to hold a restricted gaming licence in NSW, the Liquor and Gambling Commissioner commenced a review of the operations of SkyCity Adelaide.

The commissioner issued a formal notice to SkyCity Adelaide on 25 February 2021 requesting certain information to allow him to assess the controls that SkyCity Adelaide has in place to protect against the same or similar failings, as reported by the Hon. Patricia Bergin SC, occurring in relation to the management and operations conducted under the South Australian Casino licence.

The commissioner has been liaising with AUSTRAC.

After discussing the formal enforcement investigation with AUSTRAC, the commissioner has determined to put his review of SkyCity Adelaide on hold and will continue to collaborate regularly with AUSTRAC during the course of its investigation.

It would be inappropriate for me to comment on the investigation.

Consumer and Business Services inspectors are rostered at SkyCity Adelaide to scrutinise Casino systems, operating practices and procedures to assess compliance with the:

Casino Act 1997;

Approved Licensing Agreement;

Casino Duty Agreement;

Approved Game Rules;

Casino Control Standards; and

Responsible Gambling & Advertising Codes of Practice.

The primary method of assessing compliance is achieved through CBS inspectors monitoring the operations of the Casino either in person by being present on the gaming floor or using surveillance cameras, including gaming table play, gaming areas generally, cashier areas, cash clearances from tables and gaming machines and back of house secure areas (including the casino cage, chip bank and cash counting areas).

This is supported by the audit and reconciliation of casino, gaming and revenue transactions and security and surveillance taskings.

Inspectors also:

attend the opening of gaming tables to verify the accuracy of gaming chip inventory records and to check that gaming equipment is fit for purpose;

attend VIP premium gaming and cashier areas to observe the buy-in of front moneys, high stake table gaming play and the settlement of proceeds to commission program participants; and

act on behalf of patrons who have a gaming related complaint which has not been resolved by the Casino.