Casino close associates

Who is a close associate

Close associates of a casino licence can be:

• the body corporate that holds the casino licence
• the body corporate applying for the casino licence
• a person or body corporate that holds an interest of 10 per cent or more shares in either the casino or casino licence applicant
• a director, manager, secretary or other executive officer working at or applying to work at a casino
• a director, manager, secretary or other executive officer working at or applying to work at a body corporate related to the casino
• a person who holds or will hold a relevant financial interest, or who is able, in the NICC’s opinion, to exercise a significant influence over the management or operation of the casino licence 
• a person who holds or will hold a relevant position in the casino operator’s or applicant’s business that is or will be carried on under the authority of the licence.

A financial institution is not a close associate just because they have a financial interest in relation to a casino.

Suitability

The NICC cannot grant a casino licence without approval for the suitability of the applicant's close associates. Where a casino licence is in force, the casino operator must seek close associate approval for new staff (as above) and changes to relevant companies.

Suitability assessments are done in conjunction with Liquor & Gaming NSW (L&GNSW), through their Assurance and Probity team. This can take weeks, months or years depending on the complexity of the individual or company's background.

Determining suitability

L&GNSW conducts extensive background checks and interviews to determine whether each director, partner, trustee, executive officer, secretary and any other officer, is a suitable person to be associated with the ownership, administration or management of a casino or casino licence applicant.

Make an application

The suitability process considers whether close associate applicants:

• are of good repute, having regard to character, honesty and integrity
• are of sound and stable financial background
• if not Australian citizens, have or have arranged satisfactory ownership, trust or corporate structures
• have or can obtain financial resources that will ensure the financial viability of the proposed casino
• have or are able to obtain the services of people with sufficient experience in the management and operation of a casino
• have sufficient business ability to establish and maintain a successful casino.

Flags are raised where an applicant is found to have an association with any person, body or business who is not of good repute or has undesirable or unsatisfactory financial sources.

Investigating applications

Applicants may need to consent to photographs, finger prints and palm prints which are referred to the Commissioner of Police along with relevant personal details details and supporting information. The Commissioner of Police will make inquiries and report back to the NICC. 

The NICC may also give notice for the applicant to:

• produce records relevant to investigation of the application and to permit examination of the records,  extracts and copies 
• authorise a person to comply with the above requirement 
• give the NICC authority or consent to enable it to obtain information (including financial and other confidential information) from other people about the applicant ans their associates or relations.

The NICC can refuse an application if the applicant does not consent to having their photographs, finger and palm prints taken or does not provide the material requested by the NICC. 

The cost of a close associate application is paid by the applicant. Investigation and inquiry costs can include overseas and interstate travel and it is a condition of a licence that the costs are paid in full.

If the information given for an application changes, the applicant must notify the NICC in a statutory declaration. 

The NICC decides whether to grant or not grant a licence. Casino close associate licences are subject to the Casino Control Act and Regulation as well as any additional conditions imposed by the NICC such as divestment of shares or other interests.

Things applicants should know

During suitability assessment interviews, applicants should be able to demonstrate a knowledge of matters relating to casino risks and to corporate governance more broadly. The NICC expects close associates to have a practical knowledge of:

• anti-money laundering and anti-counter terrorism financing risks
• the political system of the Peoples Republic of China
• organised crime groups and activities in Macau and other casinos
• the findings of the Bergin, Bell and other commissions of inquiry concerning Australian casinos 
• risk management systems
• corporate governance and director’s responsibilities under Australian law.

Training for casino close associates

In addition to knowledge in the above matters, section 64 of the casino laws require casino close associates and casino special employees to undertake training and obtain a certificate of competency specific to their functions.

Under the casino laws, close associates need a working knowledge of responsible practices for the conduct of gaming and prevention of money laundering and terrorism financing activities within the operations of the casino.

The content of training is composed by the casino operator and approved by the NICC. Evidence of  training and certificates issued are to be kept by the casino operator for provision to the NICC when required.