Royal commission finds Perth Crown unsuitable to hold casino licence in Western Australia

The final report of the Perth Casino Royal Commission finds Crown Resorts unsuitable to hold a gaming licence in Western Australia but rather than revocation of the licence, the commission is calling for Crown to undertake remediation work along with the establishment of an independent monitor. Remediation is anticipated to ensure the security of approximately 5,000 jobs.

Lead commissioner Neville Owen’s 994-page report was tabled in WA Parliament today after being delivered to the government earlier this month.

The report found that Crown had facilitated money laundering, failed to investigate suspicions of money laundering, permitted junkets with links to criminals to operate at the Perth casino, and failed to minimise gambling-related harm through the use of electronic gaming machines.

In tabling the report, WA Racing and Gaming Minister Tony Buti said the government accepted the royal commission's findings and that there had been failings by both Crown and state regulators.

The commission made 59 recommendations aimed at both Crown, the regulator and government with Minister Buti advising the government was considering them in detail.

Crown has been given two years to respond to the recommendations in the report. Its response will be assessed by an independent monitor - yet to be appointed, who will provide a report to regulators at the end of the two-year period.

Dr Buti notes “It is clear that over decades standards have eroded and integrity has been lost and the transparency of Australia’s casino operator has diminished. Put simply, in many cases Crown has demonstrated poor corporate citizenship.

“It is a privilege to hold a gambling licence in Western Australia and the royal commission has shown that Crown has, at times, abused that privilege.”

The report also found the state’s gaming regulator, the Gaming and Wagering Commission, failed casino patrons and recommended it be better resourced and more independent of its parent department, the Department of Local Government, Sport and Cultural Industries.

Minister Buti said the people of Western Australia "deserve better" and said the royal commission had found failings by both Crown and state regulators.

“The government accepts the need to overhaul the regulatory legislation including increased powers and penalties and to improve the Gaming and Wagering Commission’s resources.”

Minister Buti said the state government would fast-track reforms, and much of the issues raised through the royal commission were already being addressed as the evidence unfolded.

A key response by the government will be to overhaul casino laws in Western Australia, with Minister Buti highlighting that some laws would be introduced to Parliament this year.

The report however acknowledged that Perth Crown had taken steps to improve its conduct, meaning the commission was dealing with a different situation to similar inquiries in New South Wales and Victoria.

"A lot has changed, mainly for the better, even since the Victorian inquiry reported in October 2021," the commissioners wrote.

They noted Crown's corporate and governance structure, as well as the Perth casino's risk management, gambling-related harm and money laundering programs, all required attention.

The commission also found that the regulatory framework to manage Crown was designed "without the experience or understanding of modern casino gaming operations and the risks which they pose to the public.

"It was flawed from conception in that it failed to identify the legislative objectives of casino regulation and to clearly express the associated duties and powers of the regulator to meet those objectives.”

Recommendations made by the report included:

• Overhauling the governance and structure of the casino and Crown Resorts

• Introducing mandatory limits on electronic gaming machine play

• Impose conditions on membership of the casino's Pearl Room

• Replacing the existing Casino Control Act

• Increased penalties for regulatory offences

• Improving staffing and resourcing of the GWC.

• Report given to CCC, WA Police and crime watchdog

The commission heard from 70 witnesses across 59 days of hearing.