Australian Deputy Premier Tony Grant says housing permanent on-site casino inspectors at the Star Casino in Sydney, New South Wales, is a bad idea because constant close proximity could put the inspectors at risk of “regulatory capture.” That’s the term for people who become too close to the industry they are charged with regulating.
The Sydney Morning Herald reports Grant has introduced a bill legislation that would remove casino inspectors from on-site housing at the Star, and also not require their presence at James Packer’s planned casino resort at Barangaroo in Sydney Harbor.
The Herald disputed Grant’s premise, saying it is not supported by independent statutory reports on the Star Casino’s operations. Five such reports have been filed since 1997; none mention a risk of regulatory capture for casino inspectors, who are traditionally on duty 24 hours a day, seven days a week.
Under the new model, off-site inspectors will come in for “random, targeted compliance operations.” They will also oversee compliance at registered clubs and pubs as part of a new regulatory entity, Liquor and Gaming NSW.
“For a long time, this group of inspectors have been embedded at the casino and exposed to the risk of regulatory capture,” Grant told parliament. “As part of the broader liquor and gaming inspectorate employed by the Department of Justice, this risk will be significantly reduced and the regulator will be well positioned to effectively regulate the restricted gaming facility at Barangaroo when it comes online in 2019.”
A spokesman for Grant said the new structure will give inspectors “a far greater capacity to run risk-based and intelligence-led operations at the casino.
“Currently there is an average of three inspectors rostered on at the casino and this new model will allow as many as 100 inspectors to carry out an operation at the casino at any time. This is in addition to the significant contribution made by the NSW Police Force, which also ensures ongoing compliance activity at the casino.” NSW was the last Australian state to base permanent casino inspectors on-site.
