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CASINO CONTROL ACT 1992 No. 15*
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The object of this Bill is to provide for the establishment of 2 legal casinos in the
State and to control their operations.
The Bill sets up an independent Casino Control Authority as the controlling body for
casinos and provides for the appointment of a Director of Casino Surveillance who will
be responsible for the day to day surveillance of casino operations.
The objects of the Authority are to maintain and administer systems for the licensing,
supervision and control of casinos, for the following purposes:
(a) to ensure that the management and operation of a casino remains free from
criminal influence or exploitation;
(b) to ensure that gaming in a casino is conducted honestly;
(c) to promote tourism, employment and economic development generally in the
State;
(d) to contain and control the potential of a casino to cause harm to the public
interest and to individuals and families.
The Bill provides for the following:
· the granting of a licence for the establishment and operation of up to 2 casinos
· the supervision and control of a casino operator by means of investigations,
information gathering powers and disciplinary powers
*
casino the supervision of contractual arrangements involving a
· the licensing of casino employees
* Amended in committee--see table at end of volume.
· the control of the layout of a casino, the games that may be played in a casino,
the rules of those games, the gaming equipment that may be used, the times of
operation of a casino and the conduct of gaming generally
· prohibiting credit betting
· the exclusion and removal of persons from a casino
· prohibiting the entry of minors into a casino
· the duty and levies to be paid by a casino operator
· the control of a casino's accounting and internal control systems and procedures
· related, general and miscellaneous matters
PART 1--PRELIMINARY
Clause l specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a day or days to
be appointed by proclamation.
Clause 3 contains definitions.
Clause 4 provides that gaming in a casino to be licensed under the proposed Act is
lawful.
Clause 5 empowers the Minister to give directions and furnish guidelines to the
Authority if the Minister thinks it necessary or desirable to do so to protect the integrity
of casino gaming or is otherwise in the public interest. Directions and guidelines cannot
relate to the determination of licence applications or the taking of disciplinary action
against a licensee. Directions and guidelines are to be published in the Gazette and
tabled in Parliament.
PART 2--LICENSING OF CASINOS
Clause 6 provides that only 2 casino licences are to be in force at any particular
time and that each licence is to apply to one casino only.
Clause 7 allows the Minister to give directions to the Authority concerning such
matters as the permissible location for a casino, the required style and size of a casino
and the development required to take place in conjunction with a casino. The Authority
must exercise its functions in a manner that is consistent with any such Ministerial
directions.
Clause 8 allows the Authority, at the direction of the Minister, to invite expressions
of interest for the establishment and operation of a licensed casino. The invitation must
be consistent with any Ministerial directions under clause 7 and must be made publicly.
Clause 9 requires the Authority to invite applications for the grant of a casino
licence if the Minister directs that applications be invited The invitation and any
application must be consistent with any Ministerial directions under clause 7 and must
be made publicly.
Clause 10 lists the matters that the Authority is required to take into account in
determining an application for a casino licence.
Clause 12 defines the expression "close associate", which is used in clause 11 and
in other provisions of the proposed Act. Under clause 11 the Authority must not grant a
casino licence to a person unless satisfied that each of the person's close associates is a
suitable person. This will not prevent the Authority inquiring into the suitability of other
associates of an applicant and operates only to establish the minimum standard of which
the Authority must be satisfied.
Clause 13 requires the Authority to carry out a thorough investigation of an
application for a casino licence. Each application must be referred to the Commissioner
of Police for inquiry and report.
Clause 14 entitles the Authority to request further information concerning an
application for a casino licence.
Clause 15 requires an applicant for a casino licence to pay the Authority's
reasonable costs of investigating the application.
Clause 16 requires an applicant for a casino licence to update the application if any
change occurs in the information provided in the application before the application is
determined.
Clause 17 deals with the procedure for the granting of an application for a casino
licence and makes it clear that the licence can be granted subject to conditions.
Clause 18 provides that a person cannot be the holder of more than one casino
licence.
Clause 19 provides that the Authority may enter into an agreement for granting a
licence exclusively within a specified area for a specified period.
Clause 20 empowers the Authority to define and redefine the premises that are to
constitute a casino at the location for which a casino licence is granted.
Clause 21 provides that a casino licence remains in force for the period for which it
is granted unless it is sooner cancelled or surrendered.
Clause 22 makes it clear that a casino licence confers no right of property and
cannot be assigned or mortgaged
Clause 23 provides for the matters to which the conditions of a casino licence can
relate and the procedure for the amendment of those conditions.
Clause 24 provides for the taking of disciplinary action by the Authority against the
holder of a casino licence on various grounds (including the contravention of any
provision of the proposed Act or of licence conditions). Disciplinary action can include
the cancellation or suspension of the licence, the imposition of a pecuniary penalty of up
to $1,000,000, the variation of the terms or conditions of the licence or the issue of a
letter of censure.
Clause 25 provides that as an alternative to the taking of disciplinary action, the
Authority can direct a casino operator to rectify the matter that constitutes the grounds
for disciplinary action.
Clause 26 provides for the effect of the suspension of a casino licence.
Clause 27 provides for a pecuniary penalty imposed by the Authority as a
disciplinary measure under clause 24 to be recovered as a debt within 6 years after the
occurrence of the matter which constituted the grounds for the disciplinary measure.
Clause 28 permits the surrender of a casino licence but only with the consent of the
Authority.
Clause 29 provides for the appointment of a manager to run a casino in the event
that the licence for the casino is suspended, cancelled or surrendered.
PART 3--SUPERVISION AND CONTROL OF CASINO OPERATORS
Division l--Directions, investigations etc.
Clause 30 empowers the Authority to give a casino operator directions as to the
conduct, supervision or control of operations in the casino.
Clause 31 requires the Authority to carry out investigations into a casino from time
to time and whenever it thinks it desirable to do so or when the Minister directs the
Authority to do so.
Clause 32 requires the Authority to carry out an investigation at least once every 3
years into whether the operator of a casino is a suitable person to give effect to the
casino licence and whether it is in the public interest that the casino licence continue in
force.
Clause 33 empowers the Authority to require a casino operator and any person that
the Authority thinks is directly or indirectly associated with a casino operator to provide
information and answer questions.
Clause 34 provides that a failure to comply with a requirement under clause 33 is
an offence and can be punished as a contempt of the Supreme Court.
Clause 35 provides for the grant of injunctions by the Supreme Court in respect of a
contravention of a provision of the proposed Act or a condition of a casino licence.
Clause 36 requires a casino operator to notify the Authority of, and in some cases
obtain its approval for, changes in the state of affairs existing in relation to the operator.
Division 2--Contracts
Clause 37 contains definitions for the purposes of the proposed Division. Important
definitions are "controlled contract" (which with certain exceptions means a contract
that concerns the supply of goods or services to a casino or that concerns such other
matters as the regulations prescribe as controlled matters) and "notifiable contract"
(which means a contract that would be a controlled contract but for the exceptions in the
definition of "controlled contract").
Clause 38 prohibits a casino operator entering into or varying a controlled contract
without first giving the Authority notice of it and an opportunity to object, and requires
a casino operator to notify the Authority when the operator enters into or varies a
notifiable contract.
Clause 39 enables the Authority to extend clause 38 to a person who the Authority
considers has some association or connection with a casino operator that is relevant to
the operation or management of the casino.
Clause 40 empowers the Authority to direct that a controlled contract be terminated
on the basis that it is not in the public interest that the contract remain in force.
Clause 41 deals with the effect of the termination of a controlled contract under
clause 40.
Clause 42 makes it an offence to give effect to a controlled contract that has been
terminated under clause 40.
Clause 43 enables the Authority to require a party to a controlled contract or a
notifiable contract to furnish information and answer questions.
PART 4-- LICENSING OF CASINO EMPLOYEES
Clause 44 contains definitions for the purposes of the proposed Part. An important
definition is that of "special employee" which means a person employed or working in
a casino in any one of certain important capacities.
Clause 45 requires persons who are special employees in a casino to be the holders
of a licence issued by the Authority.
Clause 46 requires special employees to display while on duty in a casino a form of
identification approved by the Authority.
Clause 47 deals with the making of applications for special employee licences.
Clause 48 enables the Authority to direct a person to apply for a special employee
licence if the person has a "special relationship" with a casino. A person who is the
subject of such a direction becomes a special employee and therefore requires a licence.
Clause 49 provides for the updating of an application for a special employee licence
if a change occurs in the information relating to the applicant before the application is
determined.
Clause 50 enables the Authority to require an applicant for a special employee
licence or an associate of the applicant to provide additional information to the
Authority regarding the application.
Clause 51 requires that each application for a special employee licence be referred
to the Director for investigation, report and recommendation.
Clause 52 requires the applicant for a special employee licence to pay the
reasonable costs of the Director's investigation of the application.
Clause 53 deals with how the Authority is to determine an application for a special
employee licence and the matters the Authority is required to take into account.
Clause 54 deals with the imposition and variation of conditions on a special
employee licence.
Clause 55 allows the Authority to grant a provisional special employee licence
pending its decision on the application for the full licence.
Clause 56 deals with the duration of special employee licences (generally 12
months unless the employment concerned is terminated sooner).
Clause 57 deals with the renewal of a special employee licence.
Clause 58 deals with applications for the variation of special employee licences.
Clause 59 deals with the replacement of lost, destroyed or damaged special
employee licences.
Clause 60 empowers the Authority to take disciplinary action against the holder of a
special employee licence on certain grounds. Disciplinary action can include variation of
the authority conferred by the licence or the suspension or cancellation of the licence.
Clause 61 deals with the effect of the suspension of a special employee licence.
Clause 62 requires a casino operator to terminate a special employee's employment
when notified by the Authority that the employee's licence has been suspended or
cancelled.
Clause 63 requires a casino operator to provide certain information to the Authority
concerning special employees of the operator.
Clause 64 requires a special employee to notify the Authority of certain changes in
the state of affairs existing in relation to the employee.
Clause 65 requires a casino operator to conduct
training courses for special
employees.
PART 5--CASINO OPERATIONS
Clause 66 requires the layout in a casino to be as approved by the Authority from
time to time.
Clause 67 provides that a game is not to be played in a casino unless the game has
been approved by the Authority and it is played in accordance with the rules approved
by the Authority for the game.
Clause 68 enables the Authority to give directions to a casino operator as to the
games that must be available in the casino.
Clause 69 deals with the approval of gaming equipment by the Authority.
Clause 70 enables the Authority to order the withdrawal of unsatisfactory gaming
equipment from use in a casino.
Clause 71 deals with the manner in which gaming must be conducted in a casino.
Clause 72 deals with the times that a casino can be open for gaming.
Clause 73 deals with assistance for the patrons of a casino.
Clause 74 imposes a requirement that all security and safety equipment be operated
at all relevant times.
Clause 75 prohibits credit betting and automatic teller machines in a casino.
Clause 76 deals with the cashing of cheques and the opening of deposit accounts.
Clause 77 provides a regulation making power for the control of "junkets"
(arrangements for the promotion of gaming in a casino. by groups of people, usually
involving the provision of accommodation, meals and entertainment on a complimentary
basis). It also enables regulations to be made to control the offering of individual
inducements to gamble.
Clause 78 makes it clear that entry to a casino is by licence of the casino operator.
Clause 79 deals with police powers of entry to a casino.
Clause 80 provides for the making of exclusion orders against persons to prevent
them entering or remaining in a casino. An exclusion order may be given by the casino
operator, the Director or the person for the time being in charge of the casino. Provision
is also made for a person to voluntarily apply to be excluded from a casino.
Clause 81 provides for the review of an exclusion order by the Authority.
Clause 82 empowers the Commissioner of Police to require a casino operator to
give an exclusion order to a particular person.
Clause
orders.
83 deals with the duration and revocation of exclusion
Clause 84 provides for the preparation by a casino operator of a list of persons who
are for the time being subject to an exclusion order.
Clause 85 makes it an offence for a person who is subject to an exclusion order to
enter or remain in a casino.
Clause 86 deals with the removal from a casino of persons who are subject to
exclusion orders.
Clause 87 prohibits special employees and "key officials" from gambling in a
casino. A key official is a member of the Authority, the Director, an inspector, or a
member of the staff of the Authority or consultant to the Authority designated by the
Authority to be a key official.
Clause 88 deals with the prevention of cheating in a casino.
Clause 89 authorises the detention until the arrival of a police officer of persons
suspected of committing certain offences in a casino.
Clause 90 provides that the Liquor Act 1982 does not apply to a casino, except to
the extent that the regulations otherwise provide.
Clause 91 provides that a casino is a place of public entertainment for the purposes
of certain provisions of the Local Government Act 1919.
PART 6--MINORS
Clause 92 contains definitions for the purposes of the propsed Part.
Clause 93 provides that the proposed Part applies to a casino only during its hours
of operation.
Clause 94 makes it an offence for a minor to enter or remain in a casino.
Clause 95 makes a casino operator guilty of an offence if a minor enters the casino
or is not removed from the casino.
Clause 96 requires that a person who may reasonably be suspected of being a minor
must be refused admission to a casino.
Clause 97 provides that a person in a casino who may reasonably be suspected of
being a minor may be required to state and prove his or her age, name and address.
Clause 98 makes it an offence for a minor to use false evidence of his or her age to
gain entry to a casino.
Clause 99 requires that notices be displayed in a casino concerning the exclusion of
persons under the age of 18.
Clause 100 provides that a minor is not to be imprisoned as a consequence of a
failure to pay a penalty imposed under the proposed Part.
Clause 101 is an evidentiary provision.
Clause 102 provides that the restrictions on minors entering a casino do not apply
to apprentices receiving training or instruction.
PART 7--CASINO SURVEILLANCE
Division l--The Director of Casino Surveillance
Clause 103 deals with the appointment of the Director.
Clause 104 deals with the appointment of an acting Director.
Clause 105 lists the functions of the Director.
Division 2--Casino inspectors
Clause 106 contains a definition for the purposes of the proposed Division.
Clause 107 provides for the appointment and control of casino inspectors by the
Director.
Clause 108 requires an inspector to produce his or her identification card on
demand.
Clause 109 provides for the rights of an inspector in a casino.
Clause 110 lists the functions of an inspector.
Clause 111 requires an inspector to investigate a complaint made by a patron of a
casino.
Clause 112 lists the powers of an inspector.
Clause 113 provides for the issue of search warrants for certain purposes.
Clause 114 creates various offences relating to the obstruction of inspectors.
PART 8--CASINO DUTY AND COMMUNITY BENEFIT LEVY
Clause 115 requires the holder of a casino licence to pay a duty of an amount fixed
by agreement between the Treasurer and the casino operator or (failing agreement)
determined by the Treasurer.
Clause 117 requires consultation with the Minister before the Treasurer enters into
an agreement or makes a determination for the purposes of the proposed Part.
Agreements and determinations are required to be in writing.
Clause 118 gives examples of the ways in which an agreement or determination can
fix the duty or levy.
Clause 119 requires copies of agreements and determinations to be tabled in
Parliament.
Clause 120 provides for the charging of interest on overdue amounts of casino duty
and community benefit levy.
Clause 121 provides that the casino operator is liable for the duty and levies
payable in respect of a casino licence.
Clause 122 provides for the recovery of the duty, levies and interest payable under
the proposed Part.
Clause 123 provides for the effect of the suspension of a casino licence on liabilities
under the proposed Part.
Clause 124 creates offences concerned with the evasion of the liabilities imposed by
the proposed Part.
PART 9--CASINO ACCOUNTING AND INTERNAL, CONTROLS
Clause 125 requires a casino operator to implement a system of internal controls
and administrative and accounting procedures for the casino that have been approved by
the Authority.
Clause 126 deals with the required contents of the approved systems referred to in
clause 125
Clause 127 imposes requirements on a casino operator concerning the keeping of
separate bank accounts for all transactions arising out of the operations of the casino.
Clause 128 imposes requirements on a casino operator concerning the keeping of
accounting records.
Clause 129 requires a casino operator to prepare annual financial statements and
accounts.
Clause 130 requires that all books, records and documents relating to a casino be
kept on the casino premises and be retained for 7 years.
Clause 131 provides for the auditing of the books, accounts and financial statements
of a casino.
Clause 132 requires a casino operator to submit reports to the Authority.
Clause 133 enables the Authority to extend the proposed Part to a person who the
Authority considers has some association or connection with a casino operator that is
relevant to the operation or management of a casino.
PART 10--ADMINISTRATION
Clause 134 constitutes the Authority as a body corporate and provides that it is a
statutory body representing the Crown.
Clause 135 provides that the Authority is to consist of 5 members, being the Chief
Executive and 4 other members appointed by the Governor on the recommendation of
the Minister.
Clause 136 provides for the qualifications of members of the Authority.
Clause 137 requires that a person appointed as a member of the Authority or as
Director (or to act in such a position) or as an inspector or member of staff of the
Authority must possess the highest standard of integrity.
Clause 138 provides for the appointment of the Chief Executive of the Authority.
Clause 139 provides that the Chief Executive is to manage and control the affairs of
the Authority in accordance with the directions of the Authority.
Clause 140 provides for the appointment of an acting Chief Executive.
Clause 141 sets out the objects of the Authority.
Clause 142 sets out the functions of the Authority.
Clause 143 enables the Authority to conduct negotiations and enter into agreements
on behalf of the State for or in connection with the establishment and operation of a
casino.
Clause 144 empowers the Authority to hold inquiries.
Clause 145 enables the Authority to delegate some of its functions.
Clause 146 provides for the appointment of staff by the Authority.
Clause 147 imposes restrictions on key officials obtaining employment with or
having certain other associations with a casino operator, a close associate of a casino
operator or a party to certain contracts involving a casino.
Clause 148 imposes restrictions on a person obtaining employment with or having
certain other associations with a casino operator, a close associate of a casino operator
or a party to certain contracts involving a casino, within 4 years after ceasing to be a key
official.
Clause 149 imposes a requirement of secrecy on persons who acquire information
in the exercise of functions under the proposed Act.
Clause 150 provides for the Authority to gather and disseminate information to
certain law enforcement agencies.
Clause 151 creates certain offences involving bribery of persons exercising
functions under the proposed Act.
Clause 152 protects persons involved in the administration of the Act from personal
liability for anything done in good faith in the come of its administration.
Clause 153 deals with the seal of the Authority.
Clause 154 provides for the recovery of money due to the Authority.
Clause 155 provides for the inclusion of certain matters in the Authority's annual
report.
PART 11--GENERAL
Clause 156 limits appeals from decisions of the Authority to an appeal on a
question of law from a decision to cancel or suspend a casino licence or to amend the
conditions of a casino licence.
Clause 157 provides that there is no right to compensation for certain action taken
under the proposed Act in relation to a licence under the proposed Act.
Clause 158 provides for the supply of Police records to the Authority.
Clause 159 enables the Authority to gain access to criminal records that would
otherwise be unavailable to it because the convictions are "spent".
Clause 160 provides for the destruction of finger and palm prints after they have
ceased to be of use for the purposes of the proposed Act.
Clause 161 provides for the keeping of records in writing in the English language.
Clause 162 creates an offence concerned with the giving of false or misleading
information.
Clause 163 creates offences concerning forgery and counterfeiting.
Clause 164 creates offences relating to the prevention of intoxication and unruly
behaviour in a casino.
Clause 165 provides for the service of documents on the Authority.
Clause 166 provides for the service of documents on other persons.
Clause 167 deals with evidence.
Clause 168 deals with the culpability of directors of corporations which commit
offences under the proposed Act.
Clause 169 deals with proceedings for offences.
Clause 170 provides for the forfeiture of gaming equipment and other articles in
respect of which a contravention of the proposed Act has occured
Clause 171 is a regulation making power.
Clause 172 gives effect to the Schedule of consequential amendments to other Acts.
Schedule 1 contains provisions relating to the members and procedure of the
Authority.
Schedule 2 contains provisions relating to the staff of the Authority.
Schedule 3 lists matters for which regulations m y be made.
Schedule 4 makes consequential amendments to various other Acts.