Australia
Bergin Report Finds Crown Unsuitable to Hold Casino License in NSW
Crown Resorts’ new $2.2 billion gambling mecca at Barangaroo may never open its doors after an independent inquiry found that the James Packer-backed group is unfit to hold a casino licence in NSW.
Former Supreme Court judge Patricia Bergin said in her 750-page final report released on Tuesday afternoon following an 18-month probe into the company that Crown needed a management overhaul if it ever wanted to hold a casino licence, and that the state’s gambling regulator should reconsider Mr Packer’s involvement.
Commissioner Bergin said an examination of a 2019 investigation by The Sydney Morning Herald, The Age and 60 Minutes into Crown that sparked the inquiry confirmed Crown had “facilitated money laundering” through its bank accounts; “disregarded the welfare” of its staff in China before 19 were arrested there in 2016, and went into business with high-roller junket tour groups linked to Triad and other organised crime groups.
This made Crown unsuitable to hold a casino licence with its core problem being “poor corporate governance, deficient risk management structures and processes and a poor corporate culture.”
“One of the difficulties for Crown was its unjustified belief in itself and its unwillingness to entertain the prospect that there was any force in any of the [allegations raised in the media],” Commissioner Bergin wrote.
The findings will add pressure on governments in Victoria and WA to act on Crown’s casinos in Melbourne and Perth, where the behaviour that rendered it unsuitable occurred. The recommendations are not binding, and the NSW Independent Liquor & Gaming Authority will meet later this month to consider which, if any, it should implement.
Commissioner Bergin said it was obvious that Crown’s 36% shareholder James Packer exercised the “real power” at the company which had “disastrous consequences for the company.”
She said ILGA should consider his approval as a “close associate” of Crown in light of the explosive revelation that he sent a threatening email to a Melbourne businessman in 2015. Mr Packer said his behaviour was a result of his bipolar disorder.
Commissioner Bergin recommended NSW put an ownership cap in place so any investor will need the NSW regulator’s approval to buy or own more than 10% of a casino operator, opening up the possibility of it ordering Mr Packer to sell down his stake in the company.
Commissioner Bergin said Crown’s reformation to become suitable would also require a “full and wide-ranging forensic audit of all of their accounts to ensure that the criminal elements that infiltrated [two bank accounts linked to Crown] have not infiltrated any other accounts.”
The report calls on NSW to establish the Independent Casino Commission, a “dedicated, stand-alone, specialist casino regulator with the necessary framework to meet the extant and emerging risks for gaming and casinos.”
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Australia
NSW: Minns Government Moves to Ban Gambling Advertising from Trains
The Minns Government has moved to ban gambling advertising on public transport in NSW.
The prohibition applies to Transport owned and controlled assets, including internal and external advertising on trains, metro, buses, light rail, train stations and ferry terminals.
Transport operates one of the largest portfolios of advertising assets across Australia. This includes 798 advertising boards at Sydney train stations, 49 road facing digital billboards, adverts on up to 3711 urban buses, 76 trams and across the Tangara train fleet.
The ban extends to all casino, lottery and online betting advertising.
The NSW Government will now work with multiple advertising contract holders to implement the required changes over the next 12 months.
Transport’s advertising suppliers must ensure that all advertising material complies with all applicable laws, accepted industry standards and codes of conduct established by the advertising industry for example, the Australian Association of National Advertisers (AANA) Advertiser Code of Ethics and AANA Code of Ethics Practice Note.
There are also additional rules that apply to Transport’s contract holders. These include a ban on political advertising on all assets, which applies equally to all political parties.
Where assets are not owned by Transport (e.g. bus stops, retail outlets or nearby private property), the NSW Government will work with the relevant entitles to see how their advertising can align with the gambling advertising ban.
This is the latest in a suite of reforms introduced by the Minns Labor Government to reduce gambling harm. The reforms include:
• reducing the statewide gaming machine entitlement cap in June 2023
• banning political donations from clubs with electronic gaming machines on 1 July 2023
• reducing the cash input limit on new gaming machines from $5000 to $500 on 1 July 2023
• banning all external gambling signage in venues on 1 September 2023
• banning the placement of any signage or advertising relating to gaming machines either on, or visible from an ATM or EFTPOS terminal with cash withdrawal facilities and introduced Responsible Gambling Officers for venues with more than 20 machine entitlements, on 1 July 2024
• requiring Automatic Teller Machines (ATMs) or EFTPOS terminals that allow cash withdrawals to be placed at least 5m from the entry to a gaming room and not be visible from any machine or entry to a gaming room, from 1 January 2025
• established an Independent Panel to conduct a trial of cashless gaming in pubs and clubs throughout 2024
• committing $100 million to harm minimisation – investing in research, treatment, services and reform.
Minister for Transport Jo Haylen said: “Gambling advertising has been a common sight on our public transport for a couple of years now, and I’m pleased our Government is taking action to remove it. Parents are rightly worried about the impact it has on their kids, so its not something that we think that needs to be on our transport network.
“With over 3500 buses, close to 800 advertising assets at train stations, as well as advertising on light rail and trains, Transport’s advertising contracts are vast. Because of the scale it will take some time to implement this change, but we will be working closely with our contract partners over the next 12 months to get this done.”
Minister for Gaming and Racing David Harris said: “Removing gambling advertising from public transport is another demonstration of the Minns Labor Government’s commitment to reducing gambling harm in NSW.
“This move will reduce the public’s exposure to gambling advertising and builds on the suite of reforms the government has introduced over the past 20 months to reduce harmful impacts of gambling.”
The post NSW: Minns Government Moves to Ban Gambling Advertising from Trains appeared first on European Gaming Industry News.
Australia
VGCCC: Bookmaker Fined for Customer Safety Breaches
Registered online bookmaker VicBet has been fined $130,000 for 2 breaches of its customer care obligations.
Announcing the fine, Victorian Gambling and Casino Control Commission (VGCCC) CEO Annette Kimmitt AM reminded the gambling industry of the potential for people to experience severe harm when rules are not followed.
“Breaches can have serious consequences, not only in terms of punitive actions against the companies we catch out, but for people whose lives are affected by this behaviour,” Ms Kimmitt said.
“It is an egregious betrayal of trust, for example, to continue to send marketing materials to a person who has self-excluded from a gambling venue or closed a betting account.”
The VGCCC’s investigations into complaints about VicBet found the bookmaker had:
• offered and provided a $1,800 bonus bet to a customer after they asked for their betting account to be closed in September 2022. VicBet was fined $50,000.
• repeatedly sent gambling promotional material to a customer after they permanently self-excluded from VicBet in March 2020. The penalty was an $80,000 fine.
It is an offence for a bookmaker to encourage or offer any credit, voucher or reward, or other benefit to induce an account holder to keep an account open after they have requested its closure.
Similarly, sending correspondence or promotional material to customers who have self-excluded contravenes the Victorian Bookmakers’ Association Code of Conduct.
“On these occasions, VicBet failed to live up to both its legal and social licences to operate, which include minimising the risk of harm to customers,” Ms Kimmitt said.
“Industry must respect the wishes of people who decide to have a break from, or quit, gambling. This means taking all reasonable steps to enforce harm prevention initiatives that customers commit themselves to, such as self-exclusion programs.”
VicBet was given the opportunity to “show cause” as to why disciplinary action should not be taken. Submissions from its legal representative were considered prior to a determination being made.
The post VGCCC: Bookmaker Fined for Customer Safety Breaches appeared first on European Gaming Industry News.
Australia
Michael Fitzsimons Joins Tabcorp as Chief Wagering Officer
Tabcorp Holdings Limited has appointed Michael Fitzsimons as its Chief Wagering Officer.
Mr Fitzsimons will oversee all core wagering functions including digital, retail, tote, trading, product and marketing. The position is part of the company’s evolved Executive Leadership Team structure, which was announced in December last year. The simpler structure will ensure all wagering functions will fall under one executive.
Mr Fitzsimons has over 20 years of global sports betting experience across the EU, US and Asia. He is currently Executive Director Wagering at Hong Kong Jockey Club (HKJC) where he leads strategy, trading, marketing, data and product development for fixed odds, parimutuel and lottery products.
His current role encompasses oversight of one of the world’s largest totes, including the World Pool platform, along with Risk Management of China Sports Lottery’s 120,000 betting branches. Prior to his role at the HKJC, Mr Fitzsimons was Director of International Trading and Operations at The Stars Group. During this time, he successfully launched the PokerStars Sportsbook and relaunched SkyBet in Germany and Italy. Mr Fitzsimons is on the executive of the World Tote Association (WoTA).
Tabcorp Managing Director and Chief Executive Officer elect, Gillon McLachlan, said: “Michael Fitzsimons is one of the world’s most sought after wagering executives and brings extensive global sports betting experience to Tabcorp. He has a deep knowledge of international sports betting, trading and tote. Michael is a rare find – he knows digital and retail wagering and is one of the few people in the world who can connect both to grow a wagering product.
“The creation of a Chief Wagering Officer is a significant uplift in wagering capability within our executive team. The simpler vertical structure brings all levers that grow wagering together under one executive to ensure first class execution.”
Mr Fitzsimons is expected to commence in the first half of 2025. His appointment is subject to relevant regulatory and probity approvals.
The post Michael Fitzsimons Joins Tabcorp as Chief Wagering Officer appeared first on European Gaming Industry News.
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