Why the disparity Premier Minns? Pokies are pokies
Same product. In money laundering speak, slightly different delivery channels.
In this article, I analyse the different regulatory approach to compliance adopted by The NSW Independent Casino Commission (in relation to Casinos) and Liquor & Gaming NSW (pubs and clubs).
Two extremely different approaches from the NSW Government. A Premier heavily involved and invested in the Government's review of gambling reform in pubs and clubs; one that is more secret than the NACC.
In terms of Casinos, the NSW Premier has thrown the kitchen sink at them and hasn’t missed.
My view is Liquor and Gaming NSW has failed as a regulator over a long period of time. Pubs and clubs should fall under the jurisdiction of a “one regulator” approach in NSW; all under the umbrella of The NSW Independent Casino Commission.
The legislation for pokie venues and the reporting requirements to the regulator AUSTRAC, have been around since 2006 AML/CTF Act.
AUSTRAC, going back to 2011, identified the vulnerability of the gambling sector, where money laundering is concerned.
AUSTRAC
The below statement, derives from the enclosed AUSTRAC publication Money laundering in Australia 2011.
"What are the links between money laundering and the gaming sector?
Money laundering cases in the gaming sector generally involve cash proceeds from drug trafficking and fraud committed by domestic and international organised crime groups."
Why have Governments and Regulators in Australia procrastinated over regulating pokie venues?
Fast forward to 2024, we have had multiple Inquiries into the Casinos. Even a new Regulator set up for the Casino’s specifically. The NSW Independent Casino Commission.
In a recent article Watchdog to allow Crown Sydney to keep its casino licence Crown Sydney chief executive Mark McWhinnie outlines the scope of work undertaken by the organisation, to meet regulatory compliance expectations.
“Since opening the Crown Sydney casino in August 2022, we have worked tirelessly to implement wholesale reform across our business, delivering 432 remediation activities to the NSW Independent Casino Commission (NICC),” said Crown Sydney chief executive Mark McWhinnie”. ~ (Antrobus, 2024)
More recent (15 July 2024), Star Entertainment has had its issues with software glitches, as it transitions to cashless gambling. Major technical issues causing the operator to shut down its pokies indefinitely ( Star machines shut, glitch in shift to cashless gaming | The Australian).
The transition to carded play (cashless gaming) has caused the issue. The move to cashless gaming is part of stricter regulatory requirements to reduce the risk of money laundering and other criminal activity.
The Regulator- The NSW Independent Casino Commission
These reforms included major structural overhauls along with anti-money laundering measures and changes to its corporate culture, Mr Crawford said last year.
The NSW Crime Commission
"NSW CRIME COMMISSION OUTLINES RECOMMENDATIONS TO CRACK DOWN ON SIGNIFICANT CRIMINAL GAMING ACTIVITY IN PUBS AND CLUBS
A multi-agency investigation has found that criminals are funnelling billions of dollars of “dirty” cash through poker machines in pubs and clubs every year in NSW but there are no effective controls or data collection to identify or prosecute those involved.
Approximately $95 billion in cash flows through poker machines in pubs and clubs in NSW each year, making it the gambling capital of Australia.
The introduction of a mandatory cashless gaming card and enhanced data collection measures are among a series of recommendations of an extensive inquiry led by the NSW Crime Commission to crack down on money laundering through Electronic Gaming Machines (EGMs) in NSW pubs and clubs."
NSW Crime Commissioner Michael Barnes said poker machines offered criminals one of the last remaining safe havens where cash from criminal enterprises could be “cleaned” or gambled with virtual impunity.
“At the moment serious offenders can enter NSW pubs and clubs, sit down next to patrons in gaming rooms, and openly feed large sums of cash from their crimes into poker machines with no real fear of detection." ~ New South Wales Crime Commission, 2022
(download report here or link below).
Operation Islington - Inquiry into Money Laundering via Electronic Gaming Machines-Recommendations
The Regulator-Liquor & Gaming NSW
L&GNSW is the responsible Agency in NSW for regulating compliance in NSW pubs and clubs. Regarding regulation enforcement action relating to pubs and clubs, Premier Minns has wrapped this in secrecy. Quite the opposite to Casino reform.
The NSW Minns Government establishes an Independent Panel on Gaming Reform. The Panel will oversee a cashless gaming trial on electronic gaming machines in a range of venues across NSW
The secrecy of the panel will remain intact, until it releases its report on cashless gaming in NSW, due in November 2024.
Now, NSW appoints former gaming commissioner to lead the panel into the cashless gambling trial. Former New South Wales Liquor, Gaming and Racing commissioner Michael Foggo will lead a panel of 16 to design and oversee the state’s government’s delayed cashless gambling trial, which is now expected to begin before November 2023. (NSW cashless gaming trial - Liquor & Gaming NSW ).
Tamsin Rose
For some reason, Premier Chris Minns has failed to implement the NSW Crime Commission's-Project Islington Report, dated Wednesday, 26 October 2022, relating to NSW pubs and clubs, but, has cracked down on Casinos.
When it comes to compliance, enforcement and regulation, the special treatment of pubs and clubs by the NSW Premier, is what NSW voters should be questioning.
Further References
Mayne, S. (2023, April 3). Chris Minns’ minority and the challenge of gambling reform. The Mandarin.
Forget Dominic Perrottet’s Nazi cosplay, the real issue is pokies | The Australian
Rose, T. (2023, July 12). NSW appoints former gaming commissioner to lead panel into cashless gambling trial. The Guardian.
