The Victoria government recently unveiled its ‘Casino and Gambling Legislation Amendment Bill 2021’ and introduced it into the region’s parliament. The government’s objective is to implement urgent recommendations specified by the royal commission regarding Crown Resorts.
The Bill would amend the Casino Control Act 1991, the Victorian Commission for Gambling and Liquor Regulation Act 2011, the Gambling Regulation Act 2003, and the Casino (Management Agreement) Act 1993.
This action follows the findings of the royal commission into Crown Resorts, headed up by Raymond Finkelstein. The commission was initiated under the instruction of the Minister for Consumer Affairs, Gaming and Liquor Regulation.
The investigation’s findings deemed Crown to be “unsuitable” to hold its Melbourne casino license based on its apparent “illegal, dishonest, unethical and exploitative” conduct. Despite this recommendation, the operator has managed to retain the licence.
Bill Breakdown
The bill’s amendments would allow for the enforcement of several recommendations originating from the reports. These include widening the powers of the regulator, introducing new casino operator obligations, and placing a ban on junkets.
The bill would also allow for the cancellation of Crown Melbourne’s casino licence if the Commission again finds the operation unsuitable after a mandated reform period where the property will attempt to rescue its reputation and very existence. The reform period would include the appointment of a ‘special manager’ who would oversee operations for two years.
Additional recommendations include the establishment of a new regulator model to intensify oversight of casino and gambling operators and revocation of the Casino Management Agreement provisions that compel the state to compensate Crown for specified actions taken without the operator’s consent. The recommendations would furthermore expand the list of offenses that can be leveled against a casino operator and introduce harsher penalties for transgressors.
In an official statement, the operator expressed its commitment to reform, saying,
“As with the recently released report and the Victorian government’s response, Crown will review the details of the Bill and engage with the government to understand the proposed legislative amendments relating to Crown Melbourne.”
Considerations
At the moment, the bill currently is at the second reading stage, and still needs to pass a committee stage, a third reading, and a royal ascent, before it can be officially implemented.
While the royal commission’s findings detailed “disgraceful” conduct over several years that took place over back many years, one of its numerous recommendations suggested that the removal of Crown Melbourne’s license may be detrimental to Victoria’s economic interests.
It stated that this action may result in “significant harm” to the economy of Victoria, adding that it found that Crown Melbourne “has the will and the capacity to reform itself so that it again becomes a suitable person to hold a casino licence.”
