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CASINO LIQUOR AND GAMING CONTROL AUTHORITY – ANNUAL REPORT 2008/09

The Hon Kevin Greene MP Minister for Gaming and Racing Minister for Sport and Recreation Parliament House SYDNEY NSW 2000 Dear Minister The Casino Liquor and Gaming Control Authority is pleased to present its Annual Report for the 2008/09 reporting period, for presentation to Parliament. The report has been prepared in accordance with the Casino Control Act 2009, the Liquor Act 2007, the Annual Reports (Departments) Act 1984 and the Annual Reports (Departments) Regulation 2005. Yours sincerely

Chris Sidoti David Brearley Chairperson Director Casino and Authority Operations

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CHAIRPERSON’S REPORT On behalf of the Casino Liquor and Gaming Control Authority I am pleased to report on the Authority’s operations and activities for the 2008/09 period. This is its first Annual Report. This new Authority was established as part of the liquor reform laws enacted by Parliament late in 2007 and replaces the Casino Control Authority, the Liquor Administration Board and the Licensing Court of New South Wales. The Authority’s first year has seen the implementation of the new liquor and gaming licensing and control systems. The Liquor Act 2007 commenced on 1 July 2008, introducing the most significant overhaul of the legislation since 1982. The reform package of amendments to the Gaming Machines Act 2001 commenced on 31 January 2009. Central to the liquor and gaming reforms was the formation of the new Authority. The Authority has licensing and approval (but not enforcement) functions under legislation for liquor, gaming machines and registered clubs. It continues to have responsibility for the regulation of the casino with both enforcement and quasi-judicial functions under the casino legislation. In accordance with its legislation the new Authority will maintain the same high level of control and scrutiny of casino operations, the casino licensee and related parties that had been exercised by the Casino Control Authority since 1992. The exclusivity arrangement with Star City has been renewed and a new Agreement, until 13 November 2019, has been executed. Following a review of the Casino Control Act, a first package of legislative changes was passed in June 2009, with a second due late in 2009. The amendments greatly reduced unnecessary red tape, removed a number of anomalies that had arisen from technological developments since 1992 and lifted barriers to the Authority seeking better and more efficient ways of operating to achieve its objectives. I pay special tribute to Brian Farrell, Chief Executive of the former NSW Casino Control Authority and subsequently Chief Executive of the Casino Liquor and Gaming Control Authority. Brian died suddenly on 30 January 2009. His leadership of the former Authority ensured a good and effective regime of casino regulation in this State. In the new organisation, he steered the major changes required by the new liquor and gaming laws. He contributed to the wellbeing of people in three Australian States, Queensland, Victoria and most of all New South Wales. He embodied the best traditions of public service. He is greatly missed by his colleagues here and throughout Australia. Authority Members and staff joined in expressing their grief and support to Brian’s widow, Trish, and their two sons and to his wider family. The Hon Grant McBride MP, Assistant Speaker and former Minister for Sport and Recreation, paid tribute to Brian in a speech to the NSW Legislative Assembly on 6 May 2009 stating that Brian was “a truly outstanding public servant” who “was a key figure behind the successful implementation of the new Liquor Act and the establishment of the new Authority following the abolition of the New South Wales Licensing Court, and the Liquor Administration Board”. The Authority’s first year has been extremely demanding on everyone, with the commencement of reforms in so many areas of its jurisdiction. Its success is owed to the dedication, determination and commitment of Authority members and staff. In submitting this first Annual Report, I acknowledge and thank them all for their work. I especially record my appreciation of Ron Harrex who ably took over the leadership of the Authority in the very difficult period following Brian Farrell’s death. The sound basis on which the casino is operating and the successful implementation of the significant changes in liquor and gaming regulation is the result of the dedication and sheer hard work of Ron and all the staff. The Authority remains very appreciative of the close professional relationship it enjoys within the NSW Police Casino Investigations Unit. The Authority acknowledges the importance of the Unit in assisting the achievement of the Authority’s objective of keeping the casino free from criminal influence and exploitation. I also record the Authority’s sincere appreciation to the Ministers during the 2008/09 period, the Hon Graham West until September 2008 and then the Hon Kevin Greene MP, for their support to the Authority and their assistance to its work.

Chris Sidoti Chairperson

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INTRODUCTION The Casino Liquor and Gaming Control Authority exists within Communities NSW. The staff who undertake responsibilities under the Casino Control Act for the Casino Liquor and Gaming Control Authority are made available to the Authority by Communities NSW. At 30 June 2009, the Authority was responsible for the budget allocated independently of Communities NSW for the regulation of the Star City casino. This Annual Report relates only to the Authority’s specific responsibilities under the Casino Control Act 2009 for the regulation of the casino in NSW. It does not deal with the Authority’s responsibilities under the following Acts, Regulations and reporting obligations: Gaming Machines Act 2001 Gaming Machine Regulation 2002 Liquor Act 2007 Liquor Regulation 2008 Liquor and Gaming Operations Equal Employment Opportunity (EEO) Staffing levels Recruitment Staff turnover Senior Executive Service (SES) profile Absenteeism Privacy Management Plan Disability Plan Number of officers and employees by salary level at 30 June 2009 Agreements with the Community Relations Commission Code of Conduct for Staff Those matters have been incorporated by Communities NSW into its Annual Report 2008/09.

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TABLE OF CONTENTS

CHAIRPERSON’S REPORT 2INTRODUCTION 3STATISTICS 5CHARTER 6AIMS AND OBJECTIVES FOR CASINO OPERATIONS 6AIMS AND OBJECTIVES FOR LIQUOR OPERATIONS 6

AIMS AND OBJECTIVES FOR GAMING MACHINE OPERATIONS 7ORGANISATION CHART 8MANAGEMENT AND STRUCTURE 9

METHOD AND TERM OF APPOINTMENT OF AUTHORITY MEMBERS 9AUTHORITY MEMBERSHIP AT 30 JUNE 2008 9AUTHORITY COMMITTEES 9

SUMMARY REVIEW OF CASINO OPERATIONS 10SUMMARY REVIEW OF LIQUOR OPERATIONS 10SUMMARY REVIEW OF GAMING MACHINE OPERATIONS 10AUTHORITY OPERATIONS 11

DIRECT SUPERVISION OF CASINO OPERATIONS 11RESPONSIBLE GAMING AND RESPONSIBLE SERVICE OF ALCOHOL 14GAMING-RELATED APPROVALS (casino operations) 14CASINO INTERNAL CONTROLS 14LICENSING (casino operations) 15LIQUOR LICENSING APPLICATIONS (casino operations) 16

REPORTS 16REPORTS REQUIRED UNDER SECTION 154 OF THE CASINO CONTROL ACT 16REPORTS REQUIRED UNDER SECTION 156 OF THE LIQUOR ACT 18

LEGAL CHANGE 20BUDGET REVIEW 2008/09 (casino operations) 21PAYMENT OF ACCOUNTS 2008/09 23STATEMENT OF RESPONSIBILITY 23EVENTS AFTER 30 JUNE 2009 24OVERSEAS TRAVEL 24CORPORATE MANAGEMENT OUTCOMES 25HUMAN RESOURCES 25PERSONNEL POLICIES AND PRACTICES 26CONSULTANTS 27STANDARD OPERATING POLICIES 28

APPENDIX I AUTHORITY MEMBERSHIP AND MEETINGS 30APPENDIX II COMMITTEE REPORTS 33APPENDIX III FREEDOM OF INFORMATION ACT 1989 36APPENDIX IV LEGISLATIVE COMPLIANCE INDEX 38

APPENDIX V CODE OF CONDUCT 40

APPENDIX VI FINANCIAL STATEMENTS FOR YEAR ENDING 30 JUNE 2009 52

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CASINO STATISTICS

Item 2007/08 2008/09 Total

Since Opening

Casino Taxes

Casino duty ($M) 71.67 73.48 1 101.61

International commission duty ($M) 10.59 19.75 61.14

Responsible gambling levy ($M) 11.29 12.02 141.90

Total ($M) 93.55 105.25 1 304.65

Casino Patrons

Casino patrons 9 280 000 9 180 000 107 570 000

Patron complaints 76 40 2 310

Exclusion Orders

Exclusion orders issued 443 553 6 782

Applications for review 61 93 1 113

Exclusions overruled by Authority 3 7 111

Reasons for Exclusions

Self exclusion 168 173 2 561

Unattended children 18 23 340

Disorderly conduct 83 151 1 146

Theft / fraud 85 137 1 467Gaming-related incidents and offences under the Casino Control Act

34 40 674

Direction by the Commissioner of Police 37 15 280Other (including failing to pay for meals, suspected substance abuse)

18 14 314

Total 443 553 6 782

Licensing

Special Employee Licences approved 425 554 8 452

Provisional Licences issued 355 476 7 695

Licence variations 315 244 12 061

Provisional Licences cancelled 1 1 34

Special Employee Licences renewed 129 551 4 486

Special Employee Licences refused 6 5 120

NOTE: 1 The casino operator is entitled to a GST offset payment for GST paid on international commission-based play

2 Information on Star City revenue is available at: http://www.tabcorp.com.au/resources.ashx/mediareleas

eschilddatadocuments/385/FileName/A16CCA509C148228461AB0A437EF0914/FY09_Analysts_Presentation_FINAL.pdf - Go to slide six (casinos) KPIs

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CHARTER The Casino Liquor and Gaming Control Authority was inaugurated on 1 July 2008 by the Casino Liquor and Gaming Control Authority Act 2007. This new Authority replaces the NSW Casino Control Authority, Liquor Administration Board and the Licensing Court of NSW. Under the Casino Control Act 1992 the Authority is the sole body responsible for regulation of gaming and liquor matters at Star City casino, encompassing both licensing and enforcement functions. Under the Liquor Act 2007, Gaming Machines Act 2001, Registered Clubs Act 1976 and related legislation, regulatory functions are shared between the Authority and the Director of Liquor and Gaming, the Office of Liquor, Gaming and Racing, Communities NSW.

AIMS AND OBJECTIVES FOR CASINO OPERATIONS The Objects of the Authority, as set out in Section 140 of the Casino Control Act 1992 (the Act), are to maintain and administer systems for the licensing, supervision and control of a casino, for the purpose of: ensuring that the management and operation of the casino remains free from criminal influence or

exploitation ensuring that gaming in the casino is conducted honestly containing and controlling the potential of a casino to cause harm to the public interest and to individuals

and families Section 141 of the Act provides that the Authority has such functions as are necessary or convenient to enable the Authority to achieve its Objects

AIMS AND OBJECTIVES FOR LIQUOR OPERATIONS The Objects of the Liquor Act are set out in Section 3. to regulate and control the sale, supply and consumption of liquor in a way that is consistent with the

expectations, needs and aspirations of the community to facilitate the balanced development, in the public interest, of the liquor industry, through a flexible and

practical regulatory system with minimal formality and technicality to contribute to the responsible development of related industries such as the live music, entertainment,

tourism and hospitality industries To secure the objects of the Liquor Act 2007, each person who exercises functions under this Act (including a licensee) is required to have due regard to the following: the need to minimise harm associated with misuse and abuse of liquor (including harm arising from

violence and other anti-social behaviour) the need to encourage responsible attitudes and practices towards the promotion, sale, supply, service and

consumption of liquor the need to ensure that the sale, supply and consumption of liquor contributes to, and does not detract

from, the amenity of community life

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http://www.austlii.edu.au/au/legis/nsw/consol_act/la2007107/s4.html#supply

http://www.austlii.edu.au/au/legis/nsw/consol_act/la2007107/s4.html#liquor


http://www.austlii.edu.au/au/legis/nsw/consol_act/la2007107/s4.html#function

http://www.austlii.edu.au/au/legis/nsw/consol_act/la2007107/s4.html#licensee







AIMS AND OBJECTIVES FOR GAMING MACHINE OPERATIONS The Objects of the Gaming Machines Act 2001 are set out in Section 3. to minimise harm associated with the misuse and abuse of gambling activities to foster responsible conduct in relation to gambling to facilitate the balanced development, in the public interest, of the gaming industry to ensure the integrity of the gaming industry to provide for an on-going reduction in the number of gaming machines in the State by means of the

tradeable poker machine entitlement scheme The Authority, the Director-General, the Director, the Commissioner of Police and all other persons

having functions under this Act are required to have due regard to the need for gambling harm minimisation and the fostering of responsible conduct in relation to gambling when exercising functions under this Act

In particular, due regard is to be had to the need for gambling harm minimisation when considering for the purposes of this Act what is or is not in the purposes of this Act what is or is not in the public interest

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http://www.austlii.edu.au/au/legis/nsw/consol_act/gma2001130/s4.html#poker_machine_entitlement

http://www.austlii.edu.au/au/legis/nsw/consol_act/gma2001130/s4.html#director-general

http://www.austlii.edu.au/au/legis/nsw/consol_act/gma2001130/s4.html#director

http://www.austlii.edu.au/au/legis/nsw/consol_act/gma2001130/s4.html#function

http://www.austlii.edu.au/au/legis/nsw/consol_act/gma2001130/s4.html#function


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ORGANISATION CHART CASINO OPERATIONS (at 30 June 2009)

Minister for Gaming and Racing Minister for Sport and Recreation

Authority Members and Chief Executive

Casino Regulation

Special Investigations

Casino Licence Oversight

Gaming-Related Approvals

Responsible Gaming and Responsible Service of Alcohol Approvals

Legal Agreement Monitoring

Compliance

Casino Oversight (Inspectors)

Audit

Intelligence and Financial Analysis

Authority Support

Governance and Planning

Executive Services and Probity

Legal

Licensing

Casino Special Employees

Associates

Controlled Contracts

Information Systems

and

Records Management

Administration

and

Finance

NOTES:

1. The Senior Executive Service (SES) profile is reported in the Communities NSW Annual Report 2008/09 2. Staff who regulate the Casino Control Act for the Casino Liquor and Gaming Control Authority are made available to the Authority by Communities NSW 3. Inspectors and Audit staff located on-site at the casino and Analysis staff located at NSW Police Casino Investigations Unit (PCIU) 4. Liquor and Gaming Operations (refer to Communities NSW 2008/09 Annual Report) are located at the Office of Liquor Gaming and Racing (OLGR)


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MANAGEMENT AND STRUCTURE T h t

METHOD AND TERM OF APPOINTM T st b

AUTHORITY MEMBERSHIP

he Authority consists of five Members, one of whom is the Chief Executive. All Members are part-time withe exception of the Chief Executive.

ENT OF AUTHORITY MEMBERS

he Casino Liquor and Gaming Control Act requires that persons appointed as Members of the Authority mue of the highest integrity.

AT 30 JUNE 2009

Name Position Current Appointment Term

Mr Ken Brown Member 1 July 2008 until 5 March 2011

Mrs Sharryn Brownlee Member 1 July 2008 until 12 October 2010

Mr Ron Harrex Chief Executive 2 February 2009 until 10 July 2009

Mr Chris Sidoti Chairperson 1 July 2008 until 31 December 2012

Mr Talal Yassine Deputy Chairperson 1 July 2008 until 30 June 2011

Appendix I

AUTHORITY COMMITTEES T e Authorit l A123 The roles of the Authorit T n as-needed basis to oversee e w

details the Members’ qualifications, attendance at and the frequency of meetings.

hough the Authority is part of Communities NSW, at 30 June 2009, its powers remained independent and thy formally reconstituted its independent Committees, formerly operating under the Casino Contro

uthority: . Audit, Risk and Corporate Governance Committee established 30 April 2009 . Casino Intelligence Committee established 29 January 2009 . Casino Licence Oversight Committee established 29 January 2009

y’s Committees are reported at Appendix II.

he Authority also has a less formally structured Probity Assessment Committee, which is constituted on amajor probity investigations. During the 2008/09 reporting period, the Committe

as not required to meet.


SUMMARY REVIEW OF CASINO OPERATIONS The Authority’s principal casino regulatory activities during the 2008/09 reporting period include: overseeing the operations of the casino and ascertaining whether the operation of the casino is being

properly conducted and managed detecting offences committed in or in relation to the casino and prosecuting offences under the Casino

Control Act enforcing the Government’s Responsible Service of Alcohol and Responsible Conduct of Gaming

strategies responding to patron concerns about casino operations approving gaming equipment, rules of games and new games monitoring compliance with the conditions of the casino licence and related legal agreements licensing special employees through rigorous probity assessment procedures taking disciplinary action against Licensees under the Act when the prerequisite legislative grounds exist investigating, monitoring and reviewing Controlled Contracts for the provision of goods and services to

the casino and reviewing notifiable contract notifications. Investigate close associates of the casino operator

assessing and collecting State revenue from casino operations determining applications for review of exclusion orders issued against patrons of the casino approving and monitoring building and development works in the casino complex

SUMMARY REVIEW OF LIQUOR OPERATIONS The Authority’s principal Liquor regulation activities during the 2008/09 reporting period include: applications for review of decision of Director under Section 153 of the Liquor Act 2007 issue new packaged Liquor Licences issue new hotel – general bar Licences issue on-premises Licences issue small bar Licences remove packaged Liquor Licences reviewing the regulatory framework for the liquor industries providing liquor information services to support industry self-compliance, best practice and harm

minimisation leading policy initiatives in relation to managing anti-social behaviour relating to licensed premises For additional information regarding Liquor regulation activities refer to the Communities NSW 2008/09 Annual report.

SUMMARY REVIEW OF GAMING MACHINE OPERATIONS The Authority’s principal gaming machine regulation activities during the 2008/09 reporting period include: approval for the conduct of gaming machine field trials approval of introduction of new gaming machine games approval of display of gaming machine information to players For additional information regarding gaming machine regulation activities refer to the Communities NSW 2008/09 Annual Report.

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AUTHORITY OPERATIONS

DIRECT SUPERVISION OF CASINO OPERATIONS

General The Authority provides a continuous 24-hour presence at the casino through teams of on-shift Inspectors. Inspectors prepare written reports of violations of the approved games’ rules and procedures. Where significant incidents of non-compliance occur, recommendations are made for the Authority to institute prosecution or disciplinary action against the casino operator / licensed casino special employees or other relevant individuals. Where on-site Inspectors observed minor incidents of non-compliance with requirements, these were generally resolved through direct liaison with casino management. During the 2008/09 reporting period there was one investigation resulting in an Inspector recommending that disciplinary action be taken against the casino operator.

Penalty Infringement Notices and Prosecutions During the 2008/09 reporting period, Inspectors investigated 85 incidents of alleged breach of Section 87 (cheating in the casino) issuing 27 Penalty Infringement Notices. A total of 76 Penalty Infringement Notices were issued by Inspectors for minors using false evidence of age to attempt to enter casino licensed premises. Two Penalty Infringement Notices were issued by Inspectors for minors entering liquor licensed premises. A total of 31 Penalty Infringement Notices were issued by Inspectors for excluded persons entering the casino. One Penalty Infringement Notice was withdrawn. Total fines for Penalty Infringement Notices issued during the 2008/09 reporting period were $43 670. During the 2008/09 reporting period the Authority successfully prosecuted nine cases, including one matter still to be determined at the end of the 2007/08 reporting period, relating to breaches of Section 84(1) of the Casino Control Act (excluded person not to enter casino). Total fines for the 2008/09 reporting period amounted to $4 000. From 1 July 2008, legislation prescribed the offence of “excluded person not to enter casino” as an offence for which an Inspector could serve a Penalty Infringement Notice.

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Complaints about the conduct of gaming Where errors in the delivery of casino games or disputes between patrons occur, the casino operator is required to follow prescribed procedures. These processes are to determine the appropriate outcome contained within the rules of the relevant game. Persons not satisfied with the casino operator’s determination can lodge a complaint with an Inspector. During the 2008/09 reporting period Inspectors received 37 enquiries which could have resulted in formal complaints about the conduct of gaming under Section 33 of the Act. The 37 enquiries were as follows:

Game Number of Enquiries

Baccarat 5

Blackjack 4

Gaming machines 9

Roulette 3

Other games 16

Initial assessments by Inspectors indicated that in ten instances the casino operator might not have applied rules or procedures correctly. In accordance with Section 33, in each instance the investigating Inspector provided the casino operator with the substance of the complaint and an opportunity to respond. As a result of their investigations, Inspectors were satisfied that in all ten instances there had been no contravention by the casino operator.

Excluded persons entering the casino The casino operator is required to notify an Inspector and then remove or cause to be removed any excluded person detected in the casino. Excluded persons (other than those who are self-excluded) who enter the casino commit an offence punishable under Section 84 of the Casino Control Act. During the 2008/09 reporting period, on a total of 460 occasions, 399 persons contravening their exclusion orders were detected in the casino. 229 were self-excluded persons who were detected in the casino on 277 occasions. In respect of non-voluntary excluded persons a total of 39 briefs of evidence were initiated and 124 verbal or written warnings were issued.

Reviews of exclusion orders Under Section 79(1) of the Casino Control Act the Authority or the casino operator may, by order given to a person, prohibit that person from entering or remaining in the casino. Under Section 81(1) the NSW Commissioner of Police may direct the casino operator to exclude a person from the casino. Under Section 79(3) a person can voluntarily apply to be excluded from the casino. During the 2008/09 reporting period the casino operator issued 553 exclusion orders of which 173 were self-exclusion orders. Under Section 80(1) of the Casino Control Act: “A person who is given an exclusion order may apply to the Authority within 28 days after the order is given for a review of the order unless the order was given by the Authority or at the direction of the Commissioner of Police.”

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During the 2008/09 reporting period the Authority received 93 requests from persons seeking to have their exclusion orders reviewed. There were also nine reviews still to be determined at the end of the 2007/08 reporting period. The Authority determined: 61 exclusion orders were to stand seven exclusion orders were overruled 19 applications for review of exclusion orders were received out of time two exclusion orders were revoked by the casino operator prior to determination by the Authority four applications for review were referred to the Commissioner of Police nine applications for review remain to be determined

Minors The Casino Control Act prohibits minors from entering or remaining in the casino and requires the casino operator to ensure that minors do not gain access to the gaming areas. Warning signs are prominently displayed throughout the casino complex. Casino security officers continuously attend casino entrances to sight evidence of age of suspected minors attempting to gain entry. When a person is detected using false evidence of age to attempt to enter licensed areas, an Inspector is notified and (where appropriate) a Penalty Infringement Notice is issued. For details of Penalty Infringement Notices refer to Penalty Infringement Notices and Prosecutions section.

Liquor outlets The Authority administers Liquor Licences at the casino complex under the Liquor Act 2007 as modified to apply under the Casino Control Regulation 2001. The casino operator’s liquor outlets and the retail liquor outlets (within the casino complex but not conducted by the casino operator) are subject to close scrutiny by Inspectors. No complaints were laid by Inspectors against retail liquor outlets during the 2008/09 reporting period.

Audit activities The Audit Section performs independent weekly verification of the calculation of casino gaming duty and the responsible gambling levy. Audit staff, using a risk-based approach, also conduct special audits encompassing reviews of the casino operator’s internal controls and accounting procedures. A total of six special audits were completed during the 2008/09 reporting period. Exceptions, areas of weakness and opportunities for improvement observed during these audits have been referred to the casino operator for action. Follow-up reviews are undertaken to ensure that effective and corrective measures have been implemented.

Criminal intelligence activities Regular meetings are conducted between Inspectors, the casino operator’s investigators and the NSW Police Casino Investigations Unit representatives in order to ensure effective communication of criminal intelligence. The Manager Compliance (casino operations) also chairs a monthly meeting between the casino operator and City Central Police. These meetings include a review of issues relating to local area crime, compliance with liquor licensing requirements and security of the casino site.

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RESPONSIBLE GAMING AND RESPONSIBLE SERVICE OF ALCOHOL During the 2008/09 reporting period, the Authority continued enforcement of the Government’s Responsible Gaming and Responsible Service of Alcohol policies, in accordance with the Act and Regulation. On a national level, the Authority participates in the Australian Casino and Gaming Regulators’ Responsible Gambling Working Party. This meets to review and compare initiatives in responsible gambling and harm minimisation. The Authority was also represented at the 18th Annual National Association of Gambling Studies conference which examined research relevant to the minimisation of harm associated with gambling.

GAMING-RELATED APPROVALS (casino operations)

Casino games, rules of games and equipment Approved Games Under the casino licence, the casino operator is permitted to operate gaming tables, gaming machines and the game of Star Keno. The casino operator also offers wagering through a TAB Agency and trade promotion activities within the casino which are not conducted under the Casino Control Act or the casino licence. Under Section 66 of the Casino Control Act, all games played at the casino must be conducted in accordance with rules approved by the Authority and published in the NSW Government Gazette. Star Keno rules are published in the Gazette under Section 23(2) of the Public Lotteries Act 1996. The approved rules of games are publicly available at the casino and on the Authority’s website (www.clgca.nsw.gov.au). In addition, the casino operator is required to ensure that brochures summarising the approved games and rules of play (in a text approved by the Authority) are provided to patrons on request. Approved Operational Arrangements Under various provisions of the Casino Control Act, the Authority approved operational arrangements connected with the conduct and supervision of gaming in the casino including: new gaming equipment and machines (the number of gaming machines in the casino is limited to 1 500 by

Ministerial Direction) casino floor layout and table configurations gaming staff training syllabi dealing procedures security and surveillance procedures cashier, cage and gaming pit operations amendments to rules of games Casino Internal Controls Sections 124 and 125 of the Casino Control Act require the casino operator to maintain and implement a documented system of approved internal controls and administrative and accounting procedures. These function to ensure the security and integrity of the casino’s gaming operations. Breaches of approved internal controls and procedures may result in disciplinary action by the Authority. During the 2008/09 reporting period the Authority approved 61 amendments to the system of internal controls.

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LICENSING (casino operations) For the 2008/09 reporting period, the Authority’s Licensing staff focused on the following aims and objectives: consider and determine applications for Special Employee Licences review the suitability of organisational structures and position descriptions of the casino operator and the

licensing requirements of each position consider and make recommendations for Liquor Licences and approvals to manage licensed premises consider and determine appropriateness of proposed contracts for the provision of goods and services to

the casino consider and determine applications for approval as an International Junket Operator / Representative investigate if there were grounds for disciplinary action against licensed employees During the 2008/09 reporting period, Authority representatives participated in the Australian Casino and Gaming Regulators’ Probity Investigation Working Party, which continues working toward increasing liaison between agencies and acceptance of probity investigations by other jurisdictions.

Special Employees Licensing statistics for the 2008/09 reporting period include: the approval and issue of 476 Provisional Licences the approval and issue of 554 Special Employee Licences approval of 551 licence renewals approval of 244 variations to Special Employee Licences to permit those Licensees to undertake different

functions During the 2008/09 reporting period, Licensing staff recommended to the Authority that five applications for a Special Employee Licence be refused. After the hearing of submissions from each of the applicants, the Authority determined to refuse the five applications. During the 2008/09 reporting period, the Authority cancelled one Provisional Licence because the applicant failed to disclose their criminal history. After the hearing of submissions from the applicant, the Authority determined to refuse the application.

Controlled and Notifiable Contracts In the 2008/09 reporting period, 13 Controlled Contracts were lodged with the Authority. The Authority determined that one associate of parties entering into Controlled Contracts must apply for a Special Employee Licence. This brings the number of associates that the Authority has determined must apply for a Special Employee Licence to 145. At the end of the 2008/09 reporting period, a total of 497 Controlled Contracts have been lodged with the Authority. Contractual arrangements with an annual value of less than $550 000 (excluding contracts for gaming, security and surveillance equipment supply or maintenance where lower thresholds apply) are regarded as Notifiable Contracts. There are currently 873 Notifiable Contracts with the casino operator. These contracts do not require investigation before being entered into but specific details relating to the contracts are required to be notified to the Authority.

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Liquor Licensing applications (casino operations) The Casino Control Act effectively deems the casino complex to “stand alone” in relation to the operation of the Liquor Act 2007, as modified to apply under the Casino Control Regulation 2001. Nine Liquor Licence applications have been approved by the Authority for retail liquor outlets within the casino complex. Six Liquor Licences remain active and three became inactive. During the 2008/09 reporting period, one Liquor Licence was approved by the Authority for the retail outlets other than the casino, within the casino complex. During the 2008/09 reporting period, six applications for approval to manage Liquor Licensed premises were approved, two of these applications were carried forward from the previous year.

Changes to the casino licence boundary The casino operator sought and was given approval on two occasions to redefine the casino licence boundary to include the new gaming rooms and terrace within the gold suite area.

Changes to the Liquor Licence boundary During the 2008/09 reporting period, the casino operator sought and was given approval on one occasion to redefine the Liquor Licence boundary.

REPORTS

REPORTS REQUIRED UNDER SECTION 154 OF THE CASINO CONTROL ACT

154(a) Details of any casino licence granted during the year No licences granted.

154(b) The number of licences granted under Part 4 of the Act The Authority granted: 476 Provisional Special Employee Licences 554 full Special Employee Licences

154(c) Details of any changes to the conditions of a licence made by the Authority during the year

There were 244 changes to conditions of licences issued under Part 4 of the Act to casino employees. These changes related to variations to conditions of licences regarding changing their functions from one operating division of the casino to another.

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154(d) Details of any disciplinary action taken by the Authority against the casino operator during the year

Nil

154(e) Summary of any disciplinary action taken by the Authority against persons licensed under Part 4 of the Act

Section 59(1) of the Act sets out the nature and grounds for disciplinary action that the Authority may take in relation to persons licensed under Part 4 of the Act. Section 59(2) of the Act provides that the Authority make such inquiries as it thinks fit into the question of whether there are grounds for disciplinary action against a Licensee. The Authority considers the results of the inquiries and any submissions made by the Licensee in defence or mitigation of the circumstances surrounding disciplinary proceedings. During the 2008/09 reporting period, 15 disciplinary matters relating to special employees were dealt with. The nature of the disciplinary actions follow:

GROUND GIVING RISE TO DISCIPLINARY ACTIONS

OUTCOME

Drive with high-range prescribed concentration of alcohol Licence suspended for one week Drive with middle-range prescribed concentration of alcohol Censure Drive while licence suspended Censure

Drive motor vehicle furiously / recklessly or speed / manner dangerous Organise / promote / take place in race between vehicles

Licence suspended for one week

Drive with middle-range prescribed concentration of alcohol Censure

Drive on road while licence suspended

Censure

Drive with middle-range prescribed concentration of alcohol Drive motor vehicle furiously / recklessly or speed / manner dangerous

Censure


Drive with middle range prescribed concentration of alcohol Censure

Drive dangerously occasioning actual bodily harm Organise / promote / take place in race between vehicles

Licence suspended for two weeks


Drive while licence suspended Censure

Drive on road while licence suspended Licence suspended for one week

Drive while licence suspended Failure to notify

Licence suspended for one week


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154(g) Summary of the outcome of any investigation or review carried out by the Authority during the year

One investigation was conducted resulting in an Inspector recommending disciplinary action be taken against the casino operator.

LIQUOR LICENSING OPERATIONS

REPORTS REQUIRED UNDER SECTION 156 OF THE LIQUOR ACT

156(a) The number of licences in force in each Statistical Local Area determined by the Australian Bureau of Statistics (along with the total State-wide number of Licences) during the financial year

The total number of licences in New South Wales for the 2008/09 period is 13 889 (refer over for listing).

156(b) The number of new licences granted by the Authority during the year The Authority granted a total of 2 114 new Liquor Licences: three Club Licences 16 Hotel Licences (of which nine were small bar licences) 1 474 Limited Licences 428 On-premises Licences 78 Packaged Liquor Licences 115 Producer Wholesaler Licences

156(c) The number of licences suspended or cancelled by the Authority during that year

Nil

156(d) The number of authorisations to which section 51 applies granted by the Authority during that year

The Authority granted a total of 926 authorisations: 13 drink on-premises permanent authorisations 70 extended trading authorisations 551 function on other premises authorisations 74 minors’ area authorisations five minors’ functions authorisations 175 primary service authorisations 38 sale on other premises authorisations

156(e) The number of licences in respect of which disciplinary action was taken by the Authority during that year and the nature of the disciplinary action taken

GROUND GIVING RISE TO DISCIPLINARY

ACTION OUTCOME

139 (3)(i) - Licensee not a fit and proper person

In a decision on 7 April 2009, Mr Gregory Baggott, former licensee of the Fernhill Tavern, Port Macquarie was disqualified from holding a liquor licence for three years. Two co-directors (“interested persons”) of the company who formerly operated the hotel business - Mr Paul Jones and Mr Wayne Kipa were disqualified from holding an interest in a licensed business for a period of two years each. Another co-director, Mr Gary Gant, was disqualified from holding an interest in a liquor business for three years.

18


19

12 Undefined 12 Gloucester Shire Council 250 Parramatta City Council

118 Albury City Council 216 Gosford City Council 161 Penrith City Council

64 Armidale Dumaresq Council 65 Goulburn Mulwaree Council 116 Pittwater Council

114 Auburn Council 96 Great lakes Council 128 Port Macquarie-Hastings Council

83 Ballina Shire Council 34 Greater Hume Shire Council 125 Port Stephens Council

13 Balranald Shire Council 83 Greater Taree City Council 25 Queanbeyan City Council

174 Bankstown City Council 115 Griffith City Council 185 Randwick City Council

98 Bathurst Regional Council 22 Gundagai Shire Council 35 Richmond Valley Council

103 Bega Valley Shire Council 33 Gunnedah Shire Council 115 Rockdale City Council

33 Bellingen Shire Council 12 Guyra Shire Council 132 Ryde City Council

35 Berrigan Shire Council 17 Gwydir Shire Council 49 Shellharbour City Council

163 Blacktown City Council 24 Harden Shire Council 194 Shoalhaven City Council

29 Bland Shire Council 121 Hawkesbury City Council 138 Singleton Council

34 Blayney Shire Council 19 Hay Shire Council 103 Snowy River Shire Council

134 Blue Mountains City Council 60 Holroyd City Council 61 Strathfield Municipal Council

16 Bogan Shire Council 86 Hurstville City Council 238 Sutherland Shire Council

11 Bombala Council 42 Inverell Shire Council 142 Tamworth Regional Council

9 Boorowa Council 7 Jerilderie Shire Council 18 Temora Shire Council

18 Bourke Shire Council 15 Junee Shire Council 29 Tenterfield Shire Council

6 Brewarrina Shire Council 56 Kempsey Shire Council 89 The Council of the City of Botany Bay

63 Broken Hill City Council 68 Kogarah City Council 54 The Council of the Municipality of Ashfield

62 Burwood Council 126 Ku-ring-gai Council 29 The Council of the Municipality of Hunters Hill

104 Byron Shire Council 16 Kyogle Council 48 The Council of the Municipality of Kiama

66 Cabonne Shire Council 25 Lachlan Shire Council 133 The Council of the Shire of Hornsby

69 Camden Council 169 Lake Macquarie City Council 16 The Council of the Shire of Wakool

115 Campbelltown City Council 46 Lane Cove Municipal Council 155 The Hills Shire Council

130 Canterbury City Council 32 Leeton Shire Council 29 Tumbarumba Shire Council

12 Carrathool Shire Council 202 Leichhardt Municipal Council 37 Tumut Shire Council

10 Central Darling Shire Council 75 Lismore City Council 139 Tweed Shire Council

385 Cessnock City Council 129 Liverpool City Council 7 Unincorporated Far West

142 City of Canada Bay Council 29 Liverpool Plains Shire Council 49 Upper Hunter Shire Council

50 City of Lithgow Council 13 Lockhart Shire Council 33 Upper Lachlan Shire Council

104 Clarence Valley Council 103 Maitland City Council 15 Uralla Shire Council

16 Cobar Shire Council 136 Manly Council 9 Urana Shire Council

134 Coffs harbour City Council 166 Marrickville Council 125 Wagga Wagga City Council

4 Conargo Shire Council 188 Mid-Western regional Council 13 Walcha Council

15 Coolamon Shire Council 37 Moree Plains Shire Council 26 Walgett Shire Council

42 Cooma-Monaro Shire Council 62 Mosman Municipal Council 12 Warren Shire Council

18 Coonamble Shire Council 47 Murray Shire Council 190 Warringah Council

19 Cootamundra Shire Council 5 Murrumbidgee Shire Council 37 Warrumbungle Shire Council

37 Corowa Shire Council 62 Muswellbrook Shire Council 171 Waverley Council

1 873 Council of the City of Sydney 35 Nambucca Shire Council 16 Weddin Shire Council

44 Cowra Shire Council 46 Narrabri Shire Council 28 Wellington Council

25 Deniliquin Council 22 Narranderra Shire Council 34 Wentworth Shire Council

77 Dubbo City Council 19 Narrowmine Shire Council 154 Willloughby City Council

27 Dungog Shire Council 342 Newcastle City Council 141 Wingecarribee Shire Council

96 Eurobodalla Shire Council 324 North Sydney Council 47 Wollondilly Shire Council

156 Fairfield City Council 15 Oberon Council 250 Wollongong City Council

31 Forbes Shire Council 125 Orange City Council 155 Woollahra Municipal Council

16 Gilgandra Shire Council 46 Palerang Council 149 Wyong Shire Council

26 Glen Innes Severn council 45 Parkes Shire Council 85 Yass Valley Council

45 Young Shire Council


20

LEGAL CHANGE

Casino Control Amendment Act 2009 No 48 This Act to amend the Casino Control Act 1992 was assented on 26 June 2009. Major amendments to the Act included: extending the casino licence review period from three years to five years extending the licence period for casino special employees from three years to five years Other minor changes to the Act were made to reduce red tape, reduce the administrative requirements placed on the casino operator, remove anomalies and to provide better and more efficient ways for the Authority to achieve its objectives.

Casino Control Amendment (Gambling-related Notices and Player Information) Regulation 2009 This regulation commenced on 1 June 2009, amended the Casino Control Regulation 2001 to: require gambling contact cards be made available to patrons. The cards are to contain information about

problem gambling, help options and self-exclusion from the casino. They are to be clearly seen while playing a gaming machine that is part of the bank of gaming machines or when approaching the bank of gaming machines. The card-holder is to be a clear, plastic see-through container

amend the warning advice on the gambling warning and problem gambling notices

Liquor Act 2007 and Liquor Regulation 2008 The Liquor Act 2007 and Liquor Regulation 2008 commenced on 1 July 2008, introducing the most significant overhaul of this legislation since 1982, simplifying the former liquor licencing system and delivering liquor harm minimisation measures. The new laws provide the capacity to address the impact of licenced venues on the local and broader community. The complexity and cost for stakeholders is reduced, while providing increased flexibility for licensees, more choice for patrons and greater protection for local communities from alcohol-related harm. Central to the reforms was the formation of the new Casino, Liquor and Gaming Control Authority which now has licensing and approval functions under the Liquor Legislation, assuming the former roles of the Licensing Court of NSW and Liquor Administration Board. Refer to the Authority’s website (www.clgca.nsw.gov.au) or the NSW Office of Liquor, Gaming and Regulation (www.olgr.nsw.gov.au) for details.

Casino Liquor and Gaming Control Authority Act 2007 and Casino Liquor and Gaming Control Authority Regulation 2008 This Act and Regulation constitutes the Casino, Liquor and Gaming Control Authority as the licensing and regulatory authority for the purposes of the newly introduced Liquor Act 2007, the Casino Control Act 1992, the Gaming Machines Act 2001 and the Registered Clubs Act 1976. The Act specifies the Authority’s functions; provides for the probity of officials under the gaming and liquor legislation and confers investigation and enforcement powers for the purposes of that legislation.

http://www.clgca.nsw.gov.au/

http://www.olgr.nsw.gov.au/


Gaming Machines Amendment Act 2008 and Gaming Machines Amendment Regulation 2009 This legislation commenced on 31 January 2009, introducing a number of reforms, including a new Local Impact Assessment (LIA) process aimed at enhancing the operation of the Act. It introduced further responsible gambling measures and simplified the regulatory burden on business. Refer to the Authority’s website (www.clgca.nsw.gov.au) or the NSW Office of Liquor, Gaming and Regulation (www.olgr.nsw.gov.au) for further information.

BUDGET REVIEW 2008/09 (casino operations) The Authority has a surplus of $354 000 for the 2008/09 period. Total income (including Government contributions) for the 2008/09 period was $9 860 000 and was $2 639 000 more than budget. This was mainly owing to: grants and contributions were $2 987 000 more than budget. Grants from Communities NSW ($3 231 000)

were not provided for in the original budget revenue from sales of goods and services was $542 000 more than budget owing to higher casino project

expenses recoverable from Star City Pty Ltd Partly offset by: consolidated fund recurrent appropriation was $867 000 less than budget owing to funds appropriated not

being drawn down. Consolidated fund capital appropriation was $14 000 less than budget owing to funds appropriated not being expended by 30 June 2009

Total expenditure for the year was $9 506 000 and was $2 285 000 more than budget mainly because of: employee-related expenses were $2 176 000 more than budget because a significant proportion of

personnel services fees were not provided in the budget other operating expenses were $97 000 more than budget because casino project expenses were $542 000

more than budget and partly offset by other operating expenses being $445 000 less than budget. Casino project expenses were fully recoverable from Star City Pty Ltd

It should be noted that the 2008/09 budget was only for the casino regulation activities of the Authority. However, the actual income and expenditure included personnel services costs in connection with both the casino regulation activities and liquor licensing and other regulatory functions.

21

http://www.olgr.nsw.gov.au/legislation_amended_gaming_act_2009.asp



http://www.clgca.nsw.gov.au/

http://www.olgr.nsw.gov.au/


The Authority’s actual income and expenditure for the 2008/09 period, compared to budget is summarised below: Item 2008/09

Actual $’0002008/09

Budget $’000 Variance

$’000

Income: Consolidated fund recurrent appropriation 5 691 6 558 (867)Consolidated fund capital appropriation 56 70 (14)Grants and contributions 3 231 244 2 987Sales of goods and services 696 154 542Investment revenue 186 195 (9) ------------- ------------- ------------ 9 860 7 221 2 639 ------------- ------------- ------------Expenditure: Employee related 7 412 5 236 2 176Other operating expenses 1 962 1 865 97Depreciation 132 120 12 ------------- ------------- ------------ 9 506 7 221 2 285 ------------- ------------- ------------Surplus for the year 354 0 354 ======== ======== ========

Budget for 2009/10 Please note the following budget is for the casino regulation activities of the Casino Liquor and Gaming Control Authority.

Operating Budget $’000 Expenses Operating Expenses Employee Related 5 063Other Operating Expenses 2 375Depreciation 120Total Expenses 7 558less: Retained Revenues Sales of Goods and Services 158Investment Income 198Grants and Contributions 244Total Retained Revenues 600 Net Costs of Services 6 958 ========

Capital Budget

$’000Capital Expenditure

70========

22


PAYMENT OF ACCOUNTS 2008/09 (casino operations)

Payment performance indicators Aged analysis at the end of each quarter:

Current (within

due date)

Less than 30 days overdue

Between 30 and 60

days overdue

Between 60 and 90

days overdue

More than 90 days overdue Quarter

$ ’000 $’000 $’000 $’000 $’000

September 08 1 362 33 4 1 0 December 08 1 794 27 7 0 0 March 09 1 446 57 3 0 0 June 09 2 219 50 0 0 0

Accounts paid on time within each quarter:

Total accounts paid on time Total amount paid Quarter

Target % Actual % $’000 $’000

September 08 95 97 1 362 1 400 December 08 95 98 1 794 1 828 March 09 95 96 1 446 1 506 June 09 95 98 2 219 2 269

NOTE: 1 The Authority paid on average 97 percent of its accounts by the due date and has exceeded its target of 95 percent on the payment of accounts

2 The Authority did not incur any interest charges for payments not made on time

STATEMENT OF RESPONSIBILITY

Credit card certification The Chief Executive certifies that credit card use in the Authority during the 2008/09 reporting period has been in accordance with Premier’s Memorandum and Treasurer’s Directions.

Disclosure of controlled entities The Casino Liquor and Gaming Control Authority is a reporting entity and has no entity under its control. The reporting entity is consolidated as part of the New South Wales Total State Sector and as part of the New South Wales Public Accounts.

23


Land disposal There was no land disposal during the 2008/09 reporting period. The Authority, on behalf of the State, holds title over the parcels of land bounded by Pyrmont Street, Jones Bay Road, Pirrama Road, Edward Street and Union Street, Pyrmont. This is the site of the casino and the adjacent switching station site. In respect of both sites, the Authority is the lessor in respect of long-term leases to the casino, which run to 2093. Both sites are recognised as having no value at the inception of the leases and the Authority retains the reversionary right to them, the value of which will emerge at the conclusion of the leases.

Investment performance The Authority has no investments other than bank balances within the Treasury Banking System. At 30 June 2009, the Authority had interest receivable of $186 000 from NSW Treasury

EVENTS AFTER 30 JUNE 2009 (casino operations)

Section 31 Investigation The Authority was required to investigate the casino licence every three years and form an opinion as to whether: the casino operator is suitable to continue to give effect to the casino licence it is in the public interest that the casino licence should continue in force Under an amendment to the Casino Control Act in July 2009, the Section 31 investigation is now to be conducted at intervals not exceeding five years. As a result the next Section 31 investigation is now scheduled to be undertaken in 2011. The previous Section 31 investigation took place in 2006. For additional after 30 June 2009 information, refer to: Inter-jurisdictional collaboration Corporate management outcomes Departures from the Subordinate Legislation Act 1989 (146) Legislative changes

OVERSEAS TRAVEL FOR THE 2008/09 REPORTING PERIOD

Name and Position

Country / City

Purpose Dates Leave Taken

Cost ($) Funding

Sharryn Brownlee (Authority Member)

Rome Italy

To attend the International Association of Gaming

Advisors and the International Association of

Gaming Regulators Conference in Rome, Italy

22-26 Sep

2008 Nil 17 523

Consolidated Fund

- Recurrent

Talal Yassine (Deputy

Chairperson)

Rome Italy

To attend the International Association of Gaming

Advisors and the International Association of

Gaming Regulators Conference in Rome, Italy

22-26 Sep

2008 Nil 16 041

Consolidated Fund

- Recurrent

24


Singapore Training Symposium 30 June 2009 – 2 July 2009 The Authority was represented at the inaugural Casino Regulatory Authority (CRA) and the Criminal Investigation Department (CID) joint Training Symposium in Singapore and conducted a series of training workshops for personnel at two integrated gaming resorts in Singapore, scheduled to open in early 2010. Two half-day practical table-games workshops and one full-day workshop were conducted as well as a press conference on table games training. Approximately 40 people attended each session covering the following: three card Poker four card Poker Baccarat Blackjack Caribbean Stud Mini Baccarat Pai Gow Poker No commission (even money) Baccarat Pontoon Roulette Texas Hold’ em Poker overview of cheating and theft at gaming

tables Other jurisdictions represented were from the United Kingdom, Macau, Hong Kong, New Jersey and Nevada.

NOTE: The Singapore Casino Regulatory Authority (CRA) was responsible for all costs.

CORPORATE MANAGEMENT OUTCOMES The Authority’s corporate management objectives are to ensure good corporate management practices within the Authority and to deliver effective and efficient corporate management outcomes to the Authority. When the Casino Liquor and Gaming Control Authority was inaugurated on 1 July 2008, it continued with the implementation of the existing corporate and strategic plans of the former Casino Control Authority in relation to its casino functions, A new Corporate Plan and Strategic Plan for the new Authority, covering all its operations, are scheduled for development in November 2009. These will then replace the plans operating under the former Casino Control Authority and will take direction from the Government’s state-wide direction and from Communities NSW.

HUMAN RESOURCES

Employment Under Section 24 of the Miscellaneous Acts (Casino Liquor and Gaming) Amendment Act 2007 the Casino Control Authority was abolished on 1 July 2008. In accordance with Section 27 of the Miscellaneous Acts (Casino Liquor and Gaming) Amendment Act 2007, the Casino Control Authority Division was abolished as a Division of the Government Service on 1 July 2008. This occurred under Section 104 of the Public Sector Employment and Management Act 2002. In accordance with the Act and under a Memorandum of Understanding between the Authority and Communities NSW, personnel responsible for regulating the Casino Control Act are employed by the Department and made available to the Authority for the purposes of enabling the Authority to exercise its functions. The Authority pays the Department an amount equivalent to the employees’ related costs and employment administration costs.

Staff and consultants probity assessment program outcomes Section 136 of the Casino Control Act requires persons engaged in administration of the Act to be of the highest integrity. Staff responsible for regulating the Casino Control Act, are made available to the Authority by Communities NSW. This requires a probity assessment at initial appointment and periodically during the term of engagement. The Authority has Guidelines for Probity Investigations and Inquiries as required under Section 136 of the Act.

25


Staffing Communities NSW assumed responsibility for Authority staff on 1 July 2008. Refer to the Communities NSW 2008/09 Annual Report for the following information for the Authority: Equal Employment Opportunity (EEO) staffing levels recruitment staff turnover Senior Executive Service (SES) profile absenteeism Privacy Management Plan Disability Plan number of officers and employees by salary level at 30 June 2009 agreements with the Community Relations Commission

Professional development outcomes The Authority spent $49 068 in direct training and staff development during the 2008/09 reporting period. The Authority used both skills-based training opportunities and broader developmental approaches to help Members and staff in the acquisition of skills and knowledge necessary for the organisation to meet its objectives and for the professional development of individual staff.

PERSONNEL POLICIES AND PRACTICES

Code of Conduct and Ethics All Authority, Communities NSW and central Government Policies are accessible to all staff on the Authority’s intranet and via the Communities NSW intranet. The Authority has disciplinary systems in place in the event of any breach of the Code of Conduct and Ethics or other staff policies. The Authority has a Code of Conduct and Ethics for staff and for Authority Members. Refer to Appendix V for the Code of Conduct for Members.

Occupational Health and Safety (OH&S) The Authority is committed to protecting the health, safety and welfare of all staff, clients and visitors in the workplace. This is achieved through workplace consultation and the integration of best practice occupational health, safety and injury management systems into all aspects of our planning and operations. The Authority’s OH&S Committee consists of employee representatives from the Authority’s offices at Kent Street and the casino. The Committee continued to meet quarterly during the 2008/09 period to discuss and review all relevant OH&S issues. Though the Authority is part of Communities NSW the Committee continues to operate independently. Initiatives for the 2008/09 period included continued implementation of the Authority’s three-year (July 2006 to June 2009) Occupational Health and Safety and Injury Improvement Strategy (OHS&IM). This is aligned with the government’s Working Together: Public Sector OH&S and Injury Management Strategy 2005-2008. The Authority also conducted site inspections and with the assistance of Communities NSW offered a flu vaccination program for interested staff.

26


CONSULTANTS The Authority contracts out most of its non-core business such as security, legal advice, internal audit and risk management, system development and cleaning. The Authority spent a total of $759 731 for expert advice and specialised services from various consultants. The breakdown of the Authority’s use of consultants is listed below:

Consultancies less than $30 000:

Consultant Comment Cost ($)

Human Resources and Administration Job evaluation, probity check on staff and consultants and organisational structure

16 777

Legal Legal services and advice 24 438 Risk Management Risk management and internal audit 17 950 Information Technology Network security consulting and installation 4 004

Total consultancies less than $30 000 63 169 Consultancies equal to or more than $30 000:

Consultant Comment Cost ($)

Architecture

Davison Consultants Pty Ltd Advice on casino building alterations, development / construction (refer NOTE 3)

63 020

Sub-total 63 020 Legal Clayton Utz Legal services and advice (refer NOTE 3) 633 542Sub-total 633 542

Total consultancies equal to or more than $30 000

696 562

TOTAL CONSULTANCIES 759 731

NOTE: 1 Costs are exclusive of GST

2 The above total consultancy fees do not include $111 987 paid to Communities NSW for services provided on payroll, leave management and accounting system access under a shared corporate services agreement

3 Recoverable from Star City Pty Ltd

27


STANDARD OPERATING POLICIES

Fraud Prevention and Control The Authority’s Audit, Risk and Corporate Governance Committee continued to monitor fraud prevention and control. The Authority continued its ongoing commitment and practice of its fraud prevention and control and adopted the guidelines established by its previous entity, the Casino Control Authority.

Risk Management, insurance and internal audit The Authority’s Internal Audit Charter provides the framework for internal audit, in compliance with Section 11(2) of the Public Finance and Audit Act 1983. The Authority’s internal audit function is provided by Internal Audit Bureau (IAB) Services. Subsequent to the establishment of the Casino Liquor and Gaming Control Authority on 1 July 2008, IAB Services was asked by the Authority to reassess and measure the updated risks of the Authority under the new organisational structure. The Authority’s insurance cover is arranged under the Treasury Managed Fund for workers’ compensation and public and property liabilities.

Guarantee of Service The Authority has a Guarantee of Service statement and remains committed to the provision of quality customer service. A quality service is maintained through application of the principles of continuous improvement. In particular, the Authority places high priority on: the Licensing Unit continuing to provide an efficient and friendly service to members of the public

applying for casino Special Employee Licences investigating with due diligence complaints from patrons relating to the conduct of gaming promptly responding to customer enquiries via the Authority’s Help Desk

Consumer Response During the 2008/09 reporting period, the Authority’s response to consumers was prompt, efficient and helpful. The Authority’s Help Desk serviced 512 calls and one formal complaint. An Authority protocol requires that any complaints about the Authority’s actions be directed to the Chief Executive for measured dealing. For the 2008/09 reporting period, there were no recorded complaints from the casino operator, casino patrons or the general public about the Authority’s actions.

28


Electronic service delivery The Authority maintained systems for electronic service delivery and records management throughout the 2008/09 reporting period. A number of upgrades were performed to keep the casino regulatory systems in line with the latest technology. All work undertaken met budget constraints. The annual surveillance audit of the Authority’s Information Security Management System (ISMS) was undertaken. The Authority successfully passed this audit and remains certified to ISO 27001:2005 Standard for Information Security for the governance of its casino regulatory functions. The Authority complied with all Central Agency requirements during the 2008/09 reporting period. Refer to the Communities NSW 2008/09 Annual Report for details concerning additional Authority functions that are carried out by the Government Licensing Service (GLS), Communities NSW and OLGR.

Records Management Policies and Procedures The Authority’s Records Management Policies and Procedures have been maintained in line with requirements under the State Records Act 1998. Refer to the Communities NSW 2008/09 Annual Report for details concerning additional Authority functions that are carried out by the Government Licensing Service (GLS), Communities NSW and OLGR.

Research and Development The Authority undertook no Research and Development activities during the 2008/09 reporting period.

Publications The list of available publications is at Appendix III.

29


APPENDIX I

AUTHORITY MEMBERSHIP AND MEETINGS Details of directorships held by Members of the Authority:

Mr Ken Brown AM

Member from: 6 March 2006

Qualifications: FCPA

Date of Appointment: 1 July 2008

Term: until 5 March 2011

Directorships: Board Member Racing New South Wales President, Canine Research and Veterinary Foundation of New South Wales

Mrs Sharryn Brownlee

Member from: 13 April 2005


Term: until 12 October 2010

Directorships: Director and Secretary, Ace Electrical Services Pty Ltd Director, Graduateschool.com Director, Central Coast Campus Union Ltd Deputy Chair, Central Coast Campuses Board Director, UoN Services Ltd Member of the Council for the University of Newcastle

Mr Brian Farrell

Chief Executive


Date of Current Appointment: 30 January 2009 (deceased)

Term: until 16 April 2010

Directorships: Nil

30


Mr Ron Harrex

Acting Chief Executive

Date of Appointment: 18 June 2008

Term: until 19 July 2008

Date of Appointment: 2 February 2009

Term: until 10 July 2009

Directorships: Nil

Mr Chris Sidoti

Chairperson

Date of Appointment: 1 January 2008

Qualifications: BA LLB


Term: until 31 December 2012

Directorships: Nil

Australian lawyer of at least seven years standing

Mr Talal Yassine

Acting Chairperson from: 22 September 2006 to 31 December 2007

Deputy Chairperson from: 4 November 2004

Member from: 5 March 2004

Qualifications: BA LLB LLM MBA FAICD SFCDA FCIS


Term: until 30 June 2011

Directorships: Yassine Corporation Sydney Legal Yassine Nominees Sydney Accountants Tiara NT Platinum Sound Platinum Solar Millennium Investments International Aussie Deaf Kids NSW Co-operatives Council

Australian lawyer of at least seven years standing

31


Meetings of the Authority During the 2008/09 reporting period the Authority held 14 formal meetings. The Authority meets each month (in addition to when required) to deal with issues relating to the casino, liquor and gaming.

Name Meetings attended

Maximum meetings available

Comments

Mr Ken Brown Member 12 14

Mrs Sharryn Brownlee Member 14 14

Mr Brian Farrell Chief Executive 7 7 Deceased 30 January 2009

Mr Ron Harrex Chief Executive 7 7

Acting Chief Executive from 1 July 2008 to 19 July 2008 and Chief Executive from 2 February 2009 to 10 July 2009

Mr Chris Sidoti Chairperson 14 14

Mr Talal Yassine Deputy Chairperson 12 14

32


APPENDIX II

COMMITTEE REPORTS

Casino Intelligence Committee The Casino Intelligence Committee was established on 29 January 2009. Under the former Casino Control Authority the Committee was established on 16 May 2001. On 29 January 2009, under the newly formed Casino Liquor and Gaming Control Authority, the Committee was re-established. During the 2008/09 reporting period, the Committee comprised of the Chief Executive as Committee Chairperson, a Police Commissioner representative and the head of Casino Compliance. The role of the Casino Intelligence Committee: monitor the presence of criminals and other undesirables in the casino and matters of loan sharking and

sex workers review and assess the Authority’s practices and procedures in relation to the collection and dissemination

of information concerning criminal and undesirable activities in the casino and in the vicinity of the casino provide advice to the Authority on exclusion from the casino of persons involved in or suspected of

involvement in criminal or undesirable activities monitor the relationship and interaction between Authority personnel and the Police Service and other

Law Enforcement Agencies monitor the level of co-operation given by the casino to the Authority, the Police Service and other Law

Enforcement Agencies in terms of the flow of information concerning criminal and undesirable activities in the casino and in the vicinity of the casino

During the 2008/09 reporting period, the Committee did not meet.

33


Audit, Risk and Corporate Governance Committee Under the former Casino Control Authority the Committee was established on 18 April 2002. On 29 January 2009, under the newly formed Casino Liquor and Gaming Control Authority, the Committee was re-established. The Committee Charter was adopted under the Casino Liquor and Gaming Control Authority at its inaugural meeting on 30 April 2009. The Committee’s objectives as outlined in its charter are: to assess corporate risk monitor the quality and reliability of the Authority’s financial information monitor its internal control system including: technology security and control the Code of Conduct ensure effective corporate governance

Audit functions by the Authority in terms of its regulatory role over the casino operator do not fall within this Charter. The functions of the Audit, Risk and Corporate Governance Committee are: Enhancement of the risk control framework Monitor the system of internal management and accounting controls and ensure they are operating

effectively, including: review the Authority’s risk profile and risk management strategies review the Authority’s financial statements liaise with the external and internal auditors recommend the internal audit plan to the Authority oversee the internal audit plan review and act on internal and external audit reports

review management information and communication systems to ascertain if they are operating effectively review the material and financial risk management strategy and fraud control plans of the Authority as to

their efficacy recommend to the Authority the appointment of internal auditors monitor management’s implementation of recommendations of audit reports Risk, Governance and Compliance overview identification and assessment of corporate risks consider matters of corporate governance generally and as referred by the Authority review and recommend changes to Authority Committee structure and the Audit, Risk and Corporate

Governance Committee Charter consider the effectiveness of the Authority’s information technology security and control Authority Members’ attendance at meetings:



Comments

Mrs Sharryn Brownlee 3 3

Mr Ron Harrex 3 3

Mr Chris Sidoti 3 3 Member ex-officio

Mr Talal Yassine 3 3 Committee Chairperson 30 April 2009

34


Casino Licence Oversight Committee The Casino License Oversight Committee was established on 29 January 2009, under the Casino Liquor and Gaming Control Authority and the Committee Charter was adopted at its inaugural meeting. Sharryn Brownlee was appointed Chairperson of the Committee. The Authority established its Casino License Oversight Committee on 25 March 2004 under the former Casino Control Authority. On 29 January 2009, under the newly formed Casino Liquor and Gaming Control Authority, a new charter for the Committee was adopted and the Committee re-established. Sharryn Brownlee continued as Chairperson of the Committee. The role of the Casino License Oversight Committee is outlined in its Charter: to assess the ongoing status of matters relevant to the ongoing suitability of the casino licence during any

calendar year when a Section 31 Investigation is not conducted. The Committee advises the Authority regarding any matter it considers to require investigation

the Committee is not intended to apply the same depth of test as contemplated by Section 31. The Committee can perform its functions in any way it deems appropriate including through interviewing Authority staff and reviewing of material available to the Authority and, if considered appropriate, submissions and presentations from the casino

Authority Members’ attendance at meetings:



Comment

Mr Ken Brown 3 3

Mrs Sharryn Brownlee 3 3 Committee Chairperson 29 January 2009

Mr Ron Harrex 3 3

Mr Chris Sidoti 2 3 Member ex-officio

35


36

APPENDIX III

FREEDOM OF INFORMATION ACT 1989 Section 14(1) (2) and (3) SUMMARY OF AFFAIRS OF THE CASINO LIQUOR AND GAMING CONTROL AUTHORITY SECTION 1 - POLICY DOCUMENTS The Casino Liquor and Gaming Control Authority has the following documents for inspection or purchase: Report on the Location, Size and Style of the New South Wales Casino (January 1993) Invitation Document, the Sydney Casino, Australia (May 1993) Ministerial Directions (as reported in relevant Authority Annual Reports) Report of Public Inquiry Pursuant to Section 143(4) of the NSW Casino Control Act 1992 (December

1994) Reports of Investigations Pursuant to Section 31 of the NSW Casino Control Act 1992 (December 1997,

December 2000, December 2003 and December 2006) Submission to the Independent Pricing and Regulatory Tribunal (IPART) Gaming Inquiry (27 August

1998) Annual Reports (from 1992/93 to 2008/09) Approved Rules of NSW Casino Games Fraud Prevention and Control Policy (October 2005) Privacy Management Plan Press / Media releases on major operational and administration decisions / policies The following information is available at the Casino Liquor and Gaming Control Authority’s website (www.clgca.nsw.gov.au): Authority overview Legislation - Casino Control Act 1992; Casino Control Regulation 2001; Casino Liquor and Gaming

Control Authority Act 2007; Liquor Act 2007; Liquor Regulation 2008; Miscellaneous Acts (Casino, Liquor and Gaming) Amendment Act 2007

Official Rules of New South Wales Casino Games Media releases and historical material Annual Reports (from 1992/93 to 2008/09) Introduction to Government Inspectors (March 2004) Reports of Investigations Pursuant to Section 31 of the NSW Casino Control Act 1992 (December 1997,

December 2000, December 2003, December 2006 and public submissions) Submissions to the Independent Pricing and Regulatory Tribunal (IPART) Gaming Inquiry (27 August

1998) FOI Summary of Affairs Links to Australian regulators State Plan – A New Direction for New South Wales SECTION 2 - CONTACT ARRANGEMENTS Requests under the Freedom of Information Act for access to documents held by the Casino Liquor and Gaming Control Authority must be in writing and be accompanied by a fee of $30.00. Requests should be directed to:

The Director Casino and Authority Operations Casino Liquor and Gaming Control Authority GPO Box 3970 SYDNEY NSW 2001

Inquiries may be directed by: Telephone on (02) 8234 8800 Fax on (02) 9299 7427 Email ([email protected]) Business hours are 9.00 am to 5.00 pm

mailto:[email protected]


FOI Statistics During the 2008/09 reporting period, three new FOI requests were received, processed and completed by the Authority. None were outstanding from the previous reporting period. No internal reviews were conducted during the 2008/09 period. Comparatively, during the previous reporting period, three new requests were received and none were brought forward. All of these requests were finalised within the statutory determination period of 21 days and none were finalised via a review of the Administrative Decisions Tribunal. None of these applications were transferred from another Agency. All information in relation to two of the applications was provided. Some of the information for one of these applications was blacked out as it consisted of others’ personal information or of business affairs that do not relate sufficiently to the matter. Requested information in relation to a third application was not supplied as they were contrary to a number of FOI requirements and the requested documents are subject to secrecy provisions under the Casino Control Act 1992. A $30 application fee was collected for each of the applications. There were no formal consultations nor was there any amendment or notation of personal records arising from the applications. Each of the three applications was completed within the statutory determination period of 21 days and processed within a ten hour period.

37


APPENDIX IV

LEGISLATIVE COMPLIANCE INDEX Section / Clause Code

Section / Clause Name Location

ARDA s11A Letter of Submission 1ARDA s16(5) Application for extension of time N/AARDR Sch.1 Charter 6ARDR Sch.1 Aims and objectives 6ARDR Sch.1 Access Inside front coverARDR Sch.1 Management and structure 9

Appendices I, IIARDR Sch.1 Summary review of operations 10PM 91-34 ARDR Sch.1

Funds granted to non-government community organisations N/A

ARDR Sch.1 ARDA s11(1)(f)

Legal Change 20, 21

ARDR Sch.1 Economic or other factors The Casino Liquor and Gaming Control Authority was inaugurated 1 July 2008

2-3

ARDR Sch.1 Management and activities The Casino Liquor and Gaming Control Authority was inaugurated 1 July 2008

25

ARDR Sch.1 Research and development 29ARDR Sch.1 Human resources 25

Communities NSW 2008/09 Annual Report

PM 2002-07 ARDR Sch.1

Consultants 27

TC 07/20 ARDR Sch.1 ARDR c\3A TC 08/08

Equal Employment Opportunity Communities NSW 2008/09 Annual Report

PSEMA Sch.1 DSA s9 ARDR Sch.1

Disability Plans Communities NSW 2008/09 Annual Report

ARDR Sch.1 Land Disposal 24ARDR Sch.1 Promotion 24, 25, Appendix IIIARDR Sch.1 Consumer Response 28ARDR Sch.1 Guarantee of Service 28TC 06/26 ARDR Sch.1

Payment of Accounts 23

ARDR Sch.1 TC 06/26

Time for Payment of Accounts 23

ARDR Sch.1 Risk management and insurance activities 13, 26, 28, Appendix IIARDR Sch.1 Disclosure of Controlled Entities 23PM 06-02 Disclosure of Subsidiaries N/AARDR Sch.1 ARDR c13A TC08/08

Ethnic affairs priorities statements and any agreement Communities NSW 2008/09 Annual Report

ARDR Sch1 Agreements with the Community Relations Commission Communities NSW 2008/09 Annual Report

ARDR Sch.1 Occupational Health and Safety 26

38


39

Section / Clause Code

Section / Clause Name Location

ARDR Sch.1 ARDR c13A TC 08/08

Waste Communities NSW 2008/09 Annual Report

ARSBA s7(1)(iii) ARSBR c6-7

Budgets The Casino Liquor and Gaming Control Authority was inaugurated 1 July 2008

22

ARDA s9(1)-(2)) Financial Statements Appendix VI

ARDR c4 Identification of audited financial statements Appendix VIARDR c6 Inclusion of unaudited financial statements N/A

ARDR c5 Additional matters for inclusion in annual reports First reporting year copy of Code of Conduct Events after 30 June 2008 The Casino Liquor and Gaming Control Authority was inaugurated 1 July 2008

Inside back coverAppendix V

24

ARDR c13(4) ARDR c13A

Exemptions N/A

ARDR c7,8 Performance and numbers of executive officers Communities NSW 2008/09 Annual Report

FOIA s68 FOIR s10 FOIM App. B ARDA s6(2)

Freedom of Information Act Appendix III

IPARTA s18(4) Implementation of Price Determination N/AHA S170A Heritage management N/APM 00-12 Electronic service delivery 29TD 205.01 Credit card certification 23TC 06/13 ARDA s18(1)

Requirements arising from employment arrangements Communities NSW 2008/09 Annual Report

Legislative Reference

ARDA Annual Reports (Departments) Act 1985 ARDR Annual Reports (Departments) Regulation 2005 ARSBA Annual Reports (Statutory Bodies) Act 1984 ARSBR Annual Reports (Statutory Bodies) Regulation 2005 DSA Disability Services Act 1993 FOIA Freedom of Information Act 1989 FOIR Freedom of Information Regulation 2005 FOIM Freedom of Information Manual 1994 FRC Financial Reporting Code for Budget Dependent General Government Sector Agencies HA Heritage Act 1977 IPARTA Independent Pricing and Regulatory Tribunal Act 1992 PC Premier’s Circular PM Premier’s Memorandum PF&AA Public Finance and Audit Act 1983 PPIPA Privacy and Personal Information Protection Act 1998 PSELAA Public Sector Employment Legislation Amendment Act 2006 PSEMA Public Sector Employment and Management Act 2002 TC Treasury Circular TD Treasurer’s Direction

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