Submission Title
Session Title
Session 2-1-D: Policy and Regulation, Part 4
Presentation Type
Paper Presentation
Location
Park MGM, Las Vegas, NV
Start Date
24-5-2023 9:00 AM
End Date
24-5-2023 10:30 AM
Disciplines
Business Administration, Management, and Operations | Business Law, Public Responsibility, and Ethics | Consumer Protection Law | Gaming and Casino Operations Management | Gaming Law | International Law | International Trade Law | Legislation | National Security Law
Abstract
In June 2015, fourteen South Korean casino executives were arrested on charges of soliciting Chinese players to gamble in their casinos. This single event foreshadowed a seismic change in the Australian casino market that few would have anticipated. The events which unfolded led to the two largest casino operators in Australia being found unsuitable to operate their casinos, and unable to hold their licenses. Collectively, these two casino groups reported revenues of $5.0bn in 2019, accounting for 92% of the total Australian casino market.
Both are now operating under various forms of special supervision until it can be demonstrated that the serious failures of compliance with Anti-Money Laundering/Count Terrorism Financing legislation, failures of Host Responsibility obligations, as well as incidence of gaming duty under-payments, fraudulent reporting, and misleading and deceptive conduct are addressed. Despite their rhetoric, regulators were also found wanting, and changes to regulations and legislation have also been recommended to provide stronger governance over the industry.
The paper will examine the background to the events, summarise the key findings of the statutory reviews commissioned, and postulate the set of circumstances that led to such a significant industry-wide failure.
Implications:
The geopolitical landscape is evolving, leading to profound change in the Asian and Australasian casino market. The remediation underway in the Australian casino gaming market will be outlined, the recommendations to address key risks will be evaluated, and the potential implications for the global land-based casinos will be discussed.
Keywords
Money-laundering Harm-minimisation Regulations Junkets Taxation Governance
Funding Sources
The paper and abstract are self-funded.
Competing Interests
None
Included in
Business Administration, Management, and Operations Commons, Business Law, Public Responsibility, and Ethics Commons, Consumer Protection Law Commons, Gaming and Casino Operations Management Commons, Gaming Law Commons, International Law Commons, International Trade Law Commons, Legislation Commons, National Security Law Commons
The House Doesn't Always Win
Park MGM, Las Vegas, NV
In June 2015, fourteen South Korean casino executives were arrested on charges of soliciting Chinese players to gamble in their casinos. This single event foreshadowed a seismic change in the Australian casino market that few would have anticipated. The events which unfolded led to the two largest casino operators in Australia being found unsuitable to operate their casinos, and unable to hold their licenses. Collectively, these two casino groups reported revenues of $5.0bn in 2019, accounting for 92% of the total Australian casino market.
Both are now operating under various forms of special supervision until it can be demonstrated that the serious failures of compliance with Anti-Money Laundering/Count Terrorism Financing legislation, failures of Host Responsibility obligations, as well as incidence of gaming duty under-payments, fraudulent reporting, and misleading and deceptive conduct are addressed. Despite their rhetoric, regulators were also found wanting, and changes to regulations and legislation have also been recommended to provide stronger governance over the industry.
The paper will examine the background to the events, summarise the key findings of the statutory reviews commissioned, and postulate the set of circumstances that led to such a significant industry-wide failure.
Implications:
The geopolitical landscape is evolving, leading to profound change in the Asian and Australasian casino market. The remediation underway in the Australian casino gaming market will be outlined, the recommendations to address key risks will be evaluated, and the potential implications for the global land-based casinos will be discussed.