A casino operator situated in the far north part of the state of Queensland has faced a monetary fine for partnering with a junket tour operator in an effort to attract more customers to its venue.
The Magistrates Court of Cairns heard that the Reef Hotel Casino paid betting vouchers worth AU$21,400 to Lawrence Fu to bring patrons to its gambling floor. The payment represented a 0.05% share of the casino’s turnover from players. The casino also made payments for Mr Fu’s airfares to Far North Queensland and his transfers from the airport.
As revealed during the court hearing, the junket tour operator brought groups of between 22 and 34 people to gamble at the Reef Hotel Casino on a total of five occasions in the period from December 2020 to May 2021. The agreement between the casino operator and Mr Fu has reportedly violated the Casino Control Act because the casino did not have received written approval from the gaming minister of the state.
Casinos Austria International pleaded guilty to allegedly breaching the Casino Control Act. As a corporation, the casino faced a maximum financial penalty of AU$26,110 for the offence.
The Cairns Magistrates Court was asked by a prosecutor of the Office of Liquor and Gaming Regulation to impose a fine of between AU$10,000 and AU$15,000. The legal representative of the casino, on the other hand, submitted that the penalty should not be larger than AU$10,000.
Risk and Compliance Manager Appointed by the Casino Operator
Magistrate Gelma Meoli confirmed that Casinos Austria International had pleaded guilty and had also fully cooperated with the authorities. Ms Meoli shared that the casino operator offered an apology for the compliance failure but the authorities could not allow it to repeat the same mistake and should have undertaken additional gambling compliance training for its staff members, including a training session specifically on compliance with Casino Control Act.
The Cairns Magistrates Court heard that the casino also appointed a risk and compliance manager in order to make sure that the operator’s system, policies, and processes are in line with laws and regulations. Magistrate Ms Meoli shared that the fact the company had taken those steps was what did it favour.
The gambling entity initially facing charges with the offence was the trust that owns the Reef Hotel Casino complex, The Reef Corporate Services Limited. Casino Austria International is currently a joint owner of the trust and voluntarily informed the regulatory body that it was the appropriate entity for prosecution.
A spokesperson for the Office of Liquor and Gaming Regulation shared that it was important that penalties for violating casino legislation of the state sent a strong message that criminal and unlawful behaviour will not be tolerated. The spokesperson shared that the local Government is currently evaluating all penalties under the casino legislation of the state to make sure that they meet community expectations and is determined to act accordingly.
Under the recent reforms, casino operators are currently required to self-report any potential violations of federal and state legislation and to cooperate with the regulator. There is a second tranche of reforms aimed at enhancing casino regulation and penalties set to be rolled out in 2023.
- Author
Olivia Cole
