Casino Control and Other Legislation Amendment Bill 2022
Plain English Summary
Overview
This bill overhauls Queensland's gambling regulation in response to major interstate inquiries that uncovered money laundering, criminal infiltration and other integrity failures at casinos operated by Crown and Star. It strengthens casino oversight, modernises gambling laws to allow cashless payments, creates a framework for wagering on computer-simulated events, and makes it easier for national charities to fundraise in Queensland.
Who it affects
Casino operators face significantly stronger regulation including fines of up to $50 million. All gambling operators may need to implement new harm minimisation measures. National charities benefit from streamlined cross-border fundraising registration.
Casino integrity and regulation
Strengthens the regulation of Queensland casinos in response to findings from the Bergin, Finkelstein and Owen Inquiries into Crown and Star. Casino entities must now cooperate with regulators, self-report breaches within five days, and provide information on oath. The government gains new powers including pecuniary penalties and the ability to require casinos to engage external advisers at their own cost.
- Pecuniary penalties of up to $50 million can be imposed on casino entities as disciplinary action
- Casino entities must self-report breaches and contraventions within five days
- New duty to cooperate with regulators and ensure honest and fair operations, with a maximum penalty of 160 penalty units
- Minister can direct casino entities to engage and pay for external advisers to investigate operations
- Penalty for contravening approved control systems doubled from 200 to 400 penalty units
- Detention power under section 105 removed as incompatible with human rights
Cashless gambling and harm minimisation
Removes legislative barriers to cashless payment methods across all seven Queensland gambling Acts. Enables the government to approve, evaluate and place conditions on new cashless gambling equipment. Also introduces a new regulation-making power allowing the Minister to prescribe harm minimisation measures across all forms of gambling.
- Alternative electronic payment methods can be approved for use in casinos, gaming machines, keno, lotteries, wagering and interactive gambling
- New regulation-making power to prescribe harm minimisation measures, with penalties of up to 200 penalty units for non-compliance
- Gaming rules can now be published on the department's website instead of the Queensland Government Gazette
- Chief executive can issue guidelines about how gambling legislation is administered
Simulated events wagering
Creates a framework for Tabcorp to offer wagering on computer-simulated racing and sporting events at physical retail outlets. The outcomes of simulated events must be determined solely by a random number generator. As a harm minimisation measure, wagering on simulated events cannot be placed online or by phone.
- Tabcorp authorised to conduct wagering on simulated racing and sporting events approved by the Minister
- Wagering on simulated events restricted to physical retail outlets only — online and phone betting prohibited
- Simulated event random number generators prescribed as regulated wagering equipment subject to evaluation
- Revenue taxed at 15 per cent under the Betting Tax Act 2018
Cross-border charitable fundraising
Introduces a deemed registration scheme so that charities registered with the Australian Charities and Not-for-profits Commission can fundraise in Queensland by simply notifying the state. This reduces the regulatory burden for national charities operating across state borders and aligns Queensland with South Australia and Victoria.
- ACNC-registered charities can obtain deemed registration to fundraise in Queensland immediately upon notifying the Minister
- Public objections to charity registration applications removed, speeding up the approval process
- Deemed registrants remain subject to Queensland conduct requirements, financial reporting and offence provisions
- Minister retains power to end deemed registration and impose conditions
New Year's Eve gaming hours
Formalises a longstanding administrative arrangement by automatically extending gaming machine hours to 2am on New Year's Day, aligning with existing liquor trading hours.
- Gaming machine licensees automatically receive extended hours to 2am on New Year's Day without needing to apply
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee26 May 2022View Hansard
Referred to Legal Affairs and Safety Committee
The Legal Affairs and Safety Committee examined the bill over approximately two months, tabling Report No. 28 on 22 July 2022. The committee recommended the bill be passed and separately recommended the government engage with stakeholders to review the charitable fundraising legislative framework. Two statements of reservation were filed: LNP members raised concerns about the lack of a separate casino regulator and potential ministerial influence, while the Independent Member for Noosa raised concerns about cashless gaming proceeding without accompanying harm minimisation measures and the expansion of simulated wagering without a risk assessment.
Key findings (5)
- The bill responds to findings from interstate casino inquiries (the Finkelstein, Bergin, and Owen inquiries) that identified serious integrity failures in casino operations across Australia
- The committee noted the bill's explanatory notes could have been more thorough in identifying potential breaches of fundamental legislative principles, particularly around delegating powers to regulation
- Cancer Council Queensland highlighted that smoking in premium casino gaming rooms remained an area of potential reform outside the scope of the bill
- Concerns were raised that cashless gaming could reduce the effectiveness of existing harm minimisation measures, such as staff interactions that help identify self-excluded gamblers
- The Queensland Government accepted all recommendations from the Gotterson review into Star Entertainment Group's Queensland operations and indicated further reforms would follow
Recommendations (2)
- The committee recommends that the Casino Control and Other Legislation Amendment Bill 2022 be passed.
- The committee recommends that the Queensland Government engages with stakeholders to review the legislative framework for charitable fundraising, giving consideration to the relevancy of other state and federal legislation, including consumer law.
Committee report tabled
▸Second Reading13 Oct 2022View Hansard
That the amendment be agreed to
Vote on a government amendment to a procedural motion during debate on the Casino Control and Other Legislation Amendment Bill. The LNP opposed the amendment.
The motion passed.
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Ayes (49)
Noes (36)
That the motion, as amended, be agreed to
Vote on the procedural motion as amended. The LNP opposed the motion as amended.
The motion passed.
▸Show individual votesHide individual votes
Ayes (49)
Noes (36)
▸15 members spoke8 support7 mixed
As Attorney-General, introduced the bill and moved amendments including increasing the maximum pecuniary penalty to $100 million and providing for the appointment of a special manager to oversee casino remediation, implementing recommendations from the Gotterson review.
“The Palaszczuk government is committed to ensuring that casinos in Queensland are safe and responsible and adhere to the high standard of conduct expected of them by the community.”— 2022-10-13View Hansard
Supported strong casino regulation but heavily criticised the bill as rushed and half-baked, with 27 pages of amendments dropped on the day of debate. Argued the Gotterson inquiry's terms of reference were too narrow to examine the regulator's relationship with Star or the influence of Labor lobbyists.
“This bill is a rushed and half-baked attempt to address that deficiency.”— 2022-10-13View Hansard
As committee chair, outlined the committee's examination of the bill and its recommendation to pass it. Detailed the bill's mechanisms for strengthening casino regulation, expanding information-gathering powers and facilitating cashless gambling.
“I commend the Attorney-General for her response on 13 September when she commented on the findings and allegations of criminal infiltration, money laundering and institutional concealment presented at the NSW inquiry.”— 2022-10-13View Hansard
Supported measures to reduce gambling harm and thwart criminal activity but criticised the bill as rushed and a missed opportunity, arguing the Gotterson review's narrow terms of reference prevented scrutiny of the regulator and Labor's links to Star.
“After being so slow to act, now we see the state government is forced to rush this bill through and, sadly, it represents a missed opportunity to enhance Queensland's casino regulatory framework.”— 2022-10-13View Hansard
Supported the bill and the government's acceptance of Gotterson's 12 recommendations, noting the bill provides reassurance that the government is keeping the best interests of Queenslanders in mind.
“This bill and the amendments provide reassurance to me that this government is keeping the best interests of all Queenslanders uppermost in mind.”— 2022-10-13View Hansard
Supported the bill's intent to strengthen casino integrity but raised concerns about cashless gaming proceeding without accompanying harm minimisation measures, and the expansion of simulated wagering without a risk assessment. Found it difficult to fully support the bill given last-minute amendments that could not be properly scrutinised.
“Waiting until this report was delivered would have allowed more work to be done on the issues that were raised during the inquiry including whether any recommendations should flow on to other gaming environments.”— 2022-10-13View Hansard
Supported the bill as bringing about immediate and necessary reform to strengthen casino integrity, backing the Attorney-General's decisive action in introducing the bill when she did rather than waiting for the Gotterson report.
“When the government reaches the point where a reasonable person would suspect that there is a problem and that the problem is likely to impact significantly and negatively on Queenslanders—and it is within the government's authority to act—then the government should act.”— 2022-10-13View Hansard
Supported the bill but characterised it as a massive missed opportunity, arguing the government was circling the wagons to protect itself from scrutiny over the OLGR's failure to take enforcement action against Star and the narrow terms of reference of the Gotterson inquiry.
“This bill looks awfully like the government is circling the wagons to protect themselves from attack for their failure in the casino regulation space, timed deliberately to head off criticism in respect of their own misdeeds.”— 2022-10-13View Hansard
Accepted the bill and Gotterson's recommendations but criticised the inquiry's severely curtailed scope compared to the NSW Bell inquiry, and raised concerns about the tension between the government's regulatory duty and casino revenue, including hospitality accepted by a former attorney-general from Star.
“Star has been found unsuitable to hold a gambling licence here and will shortly be issued with a show cause notice by the government.”— 2022-10-13View Hansard
Supported the bill's harm reduction aspects and cashless gaming framework, noting cashless payments are more traceable for both criminality and helping gamblers track spending, and highlighted the Cancer Council's submission about banning smoking in premium gaming rooms.
“We as parliamentarians need to balance the considerable benefits to the economy with the significant issues it can cause for some members of the community.”— 2022-10-13View Hansard
Supported the bill as a minor but welcome attempt to rein in the gambling industry, but expressed serious doubts about Labor's commitment given gambling industry donations to the Labor Party and the government's refusal to release the Queen's Wharf lease terms.
“If this government were serious about stamping out the criminal conduct of their mates in the gambling industry, then it would not be taking their money.”— 2022-10-13View Hansard
Supported the bill's measures to ensure casino operators meet the highest standards of integrity, governance, transparency and compliance, and welcomed the Attorney-General's foreshadowed amendments to increase penalties to $100 million.
“Casino operators and licensees should be required to meet the highest possible standards of integrity, governance, transparency and compliance to reduce those risks and protect the community.”— 2022-10-13View Hansard
Supported measures to reduce gambling harm but criticised the bill as premature and the late amendments as impossible to properly scrutinise. Opposed a second casino for the Gold Coast and called for stronger controls around casino operations and problem gambling.
“Despite the narrowness of the scope and the capacity for the government to have drafted a bill with greater protections and harm reductions, the LNP will always support measures to reduce gambling harm and therefore we support the measures of the bill.”— 2022-10-13View Hansard
Supported the bill as strengthening casino integrity and ensuring operations remain free from criminal influence, and praised the shift from 'responsible gambling' to 'safer gambling' under the Gambling Harm Minimisation Plan.
“Tougher gambling laws means tougher measures to ensure compliance requirements are met with increased penalties and pushes for more gambling harm minimisation measures.”— 2022-10-13View Hansard
Supported the bill's measures to reduce gambling harm but criticised the narrow terms of reference of the Gotterson review and the government's unwillingness to scrutinise the OLGR's monitoring of Star, including the decline in inspections and prosecutions since COVID.
“Whilst the LNP support the bill with measures to reduce gambling harm, it highlights the government's unwillingness to open itself to scrutiny and look at its role in monitoring the conduct of our casinos.”— 2022-10-13View Hansard
▸In Detail13 Oct 2022 – 14 Oct 2022View Hansard
Amendments to clause 4 (section 14 of the Casino Control Act) to insert a new subsection providing that confidentiality provisions do not prevent public disclosure of the existence or outcome of any investigation of a casino licensee, lessee or operator.
Amendments 1-15 to clause 9, implementing Gotterson review recommendations: increasing the maximum pecuniary penalty from $50 million to $100 million, enabling the Governor in Council to appoint a special manager for a casino entity, and allowing suspension (not just termination) of casino leases and management agreements as disciplinary action.
Amendments 16-17 to clause 10, consequential amendments to align cross-references with the new special manager provisions and suspension powers.
Amendment 18 (new clause 17A) providing that the obligation to pay a casino licence fee continues during any period of licence suspension.
Amendment 19 (new clause 28A) inserting a comprehensive special manager framework (Division 3 of Part 9), defining appointment, functions, powers, reporting requirements, costs provisions and obstruction offences for special managers overseeing casino remediation.
Amendments 20-21 to clause 29, inserting a new section 91AC empowering the Minister to direct a casino entity to prepare a remediation plan, with penalties of up to 400 penalty units for non-compliance or contravention of the plan.
Amendment 22 (new clause 30A) inserting section 114, providing that no compensation is payable by or on behalf of the State for any regulatory action affecting casino entities, overriding the Queen's Wharf Brisbane Financial and Commitment Agreement and all other casino agreements.
Amendments 23-24 to clause 33, inserting dictionary definitions for 'agreement Act', 'casino agreement' and 'special manager' consequential to the new special manager provisions.
Assent date: 21 October 2022