Casino bill firm on taint of crime

Press, 27 July 1989, Page 1

Casino bill firm on taint of crime

By

PETER LUKE

in Wellington

Casino employees can expect to extend their hands for finger-printing — but not for tips — under a Casino Control Bill clearly determined to deter the taint of criminal manipulation.

The bill was introduced to Parliament last evening, and members, on a conscience vote, opted 60 to 13 for it to proceed to the Commerce and Marketing Select Committee.

Introduced by the Minister of Tourism, Mr Hunt, the bill will legitimise New Zealand’s first casinos, including at least one in the South Island.

■ Mr Hunt acknowledged that some people still opposed the introduction of casinos — on either moral grounds or because they believed criminals would exploit them. He said the bill drew on successful overseas models, and that casino laws were in some respects "extreme.”

One unusual feature is that the bill requires all casino employees to be finger-printed to make certain of their identities.

“If applicants are able to use assumed identities, the system will not work,” said Mr Hunt. Casino workers were generally highly mobile within the industry, An employee’s certificate of approval would require a police check, including “the reputation and financial background of applicants and any record of convictions.”

The bill follows the green light given to casinos by a committee of inquiry headed by Sir Desmond Sullivan. It follows the committee’s recommendation in setting up an eight-member Casino Control Authority to issue licences and lay down detailed regulations which could cover virtually every aspect of day-to-day operations. The bill sets up a casino inspectorate under the control of the Secretary of Internal Affairs. Most authority members will be Government appointees, but it will work independently of the Government and, like the inspectorate, be funded by a casino levy. The bill provides for one casino operator in the North Island and another in the South Island, but it does not limit how many casinos can be built. Each operator will have a

three-year monopoly, and will be private-sector (not Government) owned.

The bill departs from the Sullivan committee’s report in several key areas. The committee said casinos should be majority New Zealand-owned, but the bill says this should be one of a number of factors to be considered by the authority in granting licences. Nor does the bill prescribe that a 1 per cent levy of the casino “win” go to the local community, as recommended by the committee.

The bill does not require licence holders to post a bond as security for complying with Government requirements.

The committee’s recommendations in prohibiting either tipping of employees, or giving customers credit have been adopted. The authority will weigh up casino proposals by considering such aspects as tourism, regional development, and the applicant’s expertise. All licence applicants would be subject to a police check, with the authority unable to issue a licence unless satisfied that an applicant had “good repute and sound financial background.” Applicants would have to provide a social impact report, and if their proposal failed, they would have no right of appeal. The bill provides for penalties against those trying to cheat at casino gambling, and gives the authority power to investigate licensees’ contracts to ensure no indirect criminal infiltration. Mr Hunt said there had been growing acceptance of properly conducted and supervised gaming activities. “They provide employment, make a contribution to the economy and, in particular, provide a valuable catalyst to the development of tourism.”

He believed the potential benefits of casinos outweighed any possible negative effects.

The member of Parliament for Coromandel, Mr Graeme Lee, said that Mr Hunt was wrong to believe crime and prostitution would not penetrate casinos.