The Australian gambling landscape has always been subject to scrutiny, particularly when it comes to the operations of casinos. In Western Australia (WA), the stakes are particularly high given the state’s unique position in the national casino market. The recent Royal Commissions into casino operations in Australia — particularly those that examined Crown Resorts in Victoria and Western Australia — have reshaped expectations, compliance requirements, and the overall business environment for casino operators.
This article explores what Royal Commissions mean for casino operators in WA, the implications for regulatory compliance, operational transparency, and future growth strategies in the Australian casino industry.
Understanding Royal Commissions in the Casino Context
Royal Commissions are the highest form of public inquiry in Australia. They are initiated by the government to investigate serious issues of public concern and have the power to compel witnesses, demand documents, and make far-reaching recommendations. In the case of casinos, Royal Commissions have focused on allegations of money laundering, criminal infiltration, poor governance, and failures of regulators to maintain sufficient oversight.
For casino operators in WA, the outcomes of these commissions are not just reputational risks — they create legal, financial, and operational challenges that can reshape the industry landscape.
The WA Casino Market: A Unique Landscape
Western Australia is home to Crown Perth, the state’s only licensed casino and one of the largest entertainment complexes in the country. Unlike other Australian states with multiple casino operators, WA has a monopoly-style market, which makes regulatory oversight even more critical.
For decades, Crown Perth enjoyed relatively light-touch regulation compared to its interstate counterparts. However, the revelations of systemic compliance failures at Crown’s Melbourne and Perth operations triggered the WA Royal Commission into Crown Perth in 2021. The Commission’s findings and recommendations have set a new benchmark for governance in the state.
Key Findings from the WA Royal Commission
The WA Royal Commission into Crown Perth delivered a comprehensive report highlighting serious issues in the management and oversight of the casino. Among the major findings:
- Money Laundering Failures
Crown Perth was found to have facilitated transactions that could enable money laundering through high-roller accounts and junket operations. - Poor Corporate Governance
The inquiry found significant shortcomings in Crown’s board oversight, risk management, and reporting structures. - Regulatory Failures
The WA regulator, the Gaming and Wagering Commission, was criticised for being under-resourced and overly reliant on information provided by Crown. - Unsuitability of the Operator
The Commission concluded that Crown Resorts was “unsuitable” to hold a casino licence but recommended allowing Crown to continue operating under strict remediation conditions.
These findings have had profound implications not only for Crown Perth but also for the future of casino regulation across WA.
Regulatory Reforms Triggered by Royal Commissions
Royal Commissions don’t just highlight problems — they drive reform. Following the WA and Victorian inquiries, sweeping changes have been introduced, including:
- Independent Casino Oversight Bodies: Establishment of independent bodies such as the Casino and Gaming Inspectorate in WA to oversee operations, separate from the Department of Local Government, Sport and Cultural Industries.
- Stricter Anti-Money Laundering (AML) Requirements: Casinos must now implement far more robust transaction monitoring, customer due diligence, and reporting systems.
- Restrictions on Junkets: Junket operations (bringing high-rollers from overseas) have been banned due to their high risk of criminal infiltration.
- Mandatory Governance Reforms: Casino boards are now subject to stricter accountability measures, including fitness and propriety tests for directors and executives.
- Stronger Enforcement Powers: Regulators now have expanded powers to impose fines, suspend licences, and appoint special managers to oversee casinos.
For operators in WA, these reforms mean greater compliance costs, operational restructuring, and continuous regulatory scrutiny.
The Impact on Casino Operators in WA
1. Financial Implications
Compliance with new regulatory requirements comes at a significant cost. From implementing sophisticated anti-money laundering systems to hiring compliance officers and risk professionals, casino operators must invest heavily to meet expectations.
2. Reputation and Public Trust
Royal Commissions have damaged public trust in casino operators, particularly Crown. Restoring reputation is now a priority, with transparency, community engagement, and responsible gambling initiatives being key strategies.
3. Operational Restructuring
Casinos must adapt their business models to comply with new restrictions on junkets, cash transactions, and high-roller programs. This has forced operators to shift focus towards domestic customers and broader entertainment offerings.
4. Increased Scrutiny on Executives
Directors and senior executives are now personally accountable for governance failures. This has elevated the importance of ethical leadership and corporate culture.
5. Competitive Environment
While WA has a single licensed casino, the national market is becoming increasingly interconnected. Compliance failures in WA have national and even global consequences, particularly for operators listed on the Australian Stock Exchange.
Future Challenges and Opportunities
While Royal Commissions present significant challenges, they also create opportunities for the casino industry in WA to reinvent itself.
Challenges
- High Compliance Costs: Smaller operators (if WA opens the market in the future) may struggle to meet compliance obligations.
- Evolving Criminal Tactics: Organised crime groups are constantly developing new methods to exploit casinos.
- Community Pressure: Growing public concern about gambling harm is pushing regulators towards tighter restrictions on advertising, operating hours, and gaming machines.
Opportunities
- Restoring Trust: By demonstrating a commitment to reform and responsible gambling, casinos can rebuild their social licence to operate.
- Diversification: Casinos can expand beyond gambling into entertainment, hospitality, and tourism — areas where WA has significant potential given its unique attractions.
- Technology and Innovation: Investment in digital compliance systems, data analytics, and cashless gaming can position WA’s casino sector as a leader in responsible gambling.
Lessons for the Broader Australian Casino Market
The WA experience provides lessons that extend beyond state borders:
- Regulators Must Be Independent and Well-Resourced: Reliance on operator-provided information is a recipe for failure.
- Corporate Culture Matters: Governance failures are often rooted in poor culture, where profits are prioritised over compliance.
- Proactive Compliance Is Non-Negotiable: Operators must see compliance as a business priority, not a regulatory burden.
These lessons are shaping national discussions about gambling regulation and may lead to more uniform oversight across Australia.
Conclusion
Royal Commissions have fundamentally reshaped the casino landscape in WA and across Australia. For casino operators, these inquiries are a wake-up call that compliance, governance, and social responsibility are as important as profitability. While the immediate impact has been increased scrutiny, costs, and reputational damage, the long-term outcome may be a stronger, more sustainable casino industry that balances economic benefits with community protection.
For WA specifically, the challenge lies in ensuring that Crown Perth — and any potential future operators—can operate under a model that is transparent, accountable, and aligned with community expectations. The Royal Commissions have set a new standard, and the WA casino market must adapt if it is to thrive in the years ahead.
