Western Australia's gaming minister has defended not setting up a dedicated group to advise on who oversees the state's only casino, as he presented the government's official response to last year's scathing royal commission into the organisation and its regulators and flagged a complete overhaul of gambling laws.
The Perth Casino Royal Commission, which reported to government in March last year, found Crown Resorts was unfit to hold a gaming licence in WA.
It identified failures by government departments and regulators that it said in turn allowed money laundering to continue without question, and raised concerns about allowing junkets with links to criminals to operate at the casino.
The report also found the casino's staff were too close to the regulator, saying email exchanges suggested they were "friends, rather than occupying the roles of, respectively, regulator and licensee".
But the casino was allowed to remain open as long as it undertook remediation work to become suitable under the oversight of an independent monitor.
Government backs 'cultural and structural change'
In giving parliament its official response to the royal commission, the government supported 49 of the inquiry's 59 recommendations in full, with eight supported in principle and one in part.
"While work still needs to be done to embed these improvements and ensure effective risk mitigations, the government strongly supports the cultural and structural change required to ensure stability and accountability," Racing and Gaming Minister Reece Whitby told parliament.
"I want to assure you the government is committed to restoring the community's confidence and the state's only casino is managed in a responsible way and provides a safe, well-regulated environment for patrons and the 5,000 people who work there."
Partial support was given to the suggestion WA's Gaming and Wagering Commission (GWC), which regulates the casino, form a "nominations committee" to oversee appointments to the commission and create a "skills matrix" to outline qualities needed of board members.
There are currently eight people that form the commission — headed by the director-general of the Department of Local Government, Sport and Cultural Industries, Lanie Chopping.
They are appointed by the racing and gaming minister, a position currently occupied by Mr Whitby, who took up the role in December's cabinet reshuffle.
The inquiry's recommendation was a result of its finding that the GWC had historically not been consulted about new appointments or the skills new members should have.
It heard from one member of an instance when the GWC was told a member's next meeting would be their last. They suggested creating a skills matrix to help the minister choose a replacement, but were told a new member had already been selected.
"The development of a regularly reviewed skills matrix and a nominations committee would enable the regulator to mitigate the risk of skill gaps arising in future," the inquiry reported.
In a statement, Crown said it remained committed to working constructively with the WA government, "the Gaming and Wagering Commission and the independent monitor as we continue to implement the findings of the royal commission".
"Under new ownership and management, our Future Crown program has accelerated our whole-of-company reform and is transforming our business into a Crown that exceeds the expectations of our stakeholders and the community."
Nominations committee idea dismissed
Mr Whitby said while the government would support the skills matrix, there was no need for a nominations committee to formally advise the government.
"Under the act it's my responsibility to make those appointments, so I think that is the right way to proceed," he told reporters after tabling the government's response.
Mr Whitby said having the right set of skills to ensure the right people sat on the board was "key", and said the current membership was "absolutely spot on".
When asked whether changes to that system would be considered in a rewrite of legislation governing the casino, Mr Whitby said: "We have a good system where we look at the skills and the abilities of people in the community."
He said the minister of the day would also have the benefit of the skills matrix the GWC would prepare to assess new members against.
No timeline for overhaul of 'anachronistic' laws
Mr Whitby did not give a timeline for a further overhaul of legislation, which was described by the inquiry as "anachronistic" and "flawed from conception", but admitted it was "not fit for purpose", having been introduced in the 1980s.
"A lot has changed in terms of technology and electronic gaming, but I think expectations have increased also, and a lot has been revealed by the royal commissions both here and in other states," he said.
He flagged that one area that would be looked at was online gaming and its promotion.
"Everyone with a smartphone now has a gaming machine in their pocket, potentially, and that's an approach that we'll look at and work with the federal government," the minister said.
Fines increased for non-compliance
The government has already changed legislation to increase fines for non-compliance, with maximum penalties increased to $100 million, and the maximum fine for not following a direction of the GWC increased to $250,000, with other penalties also to be reviewed to ensure they are adequate.
The independent monitor's office has also been set up, he said, with former assistant police commissioner Paul Steel appointed to the role.
Work is also underway with Australia's financial regulator, AUSTRAC, to strengthen the casino's anti-money laundering and counter-terrorism financing measures.
Mr Whitby also committed to the state's existing ban on poker machines, vowing they would never be allowed in WA, and that electronic gaming machines would not be allowed outside the casino.
"There is no way, at all, this government will ever allow poker machines in Western Australia," he said.
