Inside Asian Gaming

29 28 here are times when“trust me”just doesn’t cut it. Whether it is buying a car, insurance or real estate, people expect statutory protec- tion in their dealings.The protection might include barriers to entry, in the form of, say, licence and training requirements, regulatory supervi- sion, or dispute resolution mechanisms which don’t require resort to litigation. Casino jurisdictions across the globe have recognised that casino operators and their employees and associates should be “suitable” for licensure. In many jurisdictions, the process of determining suitability is deeply intrusive – a statutory strip search. So, what does suitability entail? In determining suitability for licensure, regard is usually had to the following: • Confirmation of the identity of the applicant. This is intended to confirm that people are who they say they are, and that their “history” is correctly and fully stated in their licence application. • Absence of relevant criminal record. Not all criminal offences which a person might have committed would make them unsuitable to operate, manage or supply a casino. For example, driving offences would not normally infer unsuitability. However, other offences, in the nature of arson, dishonesty, theft/robbery and other so-called “white collar”offences are prima-facie evidence of lack of suitability. Also rel- evant is any history of repeated offending by the applicant. For ex- ample, a senior casino executive with multiple convictions for drunk driving may be considered unsuitable to assume the responsibilities of a key employee in a management position. Apart from actual criminal record, it is also important to establish whether the applicant is of sufficiently good repute to be awarded a licence. In part, where an individual is concerned, this can be done through enquiries with police intelligence, and with other regula- tory agencies. A police records’ check alone will not establish that an applicant is of good repute; it might not be possible for a records’ check to establish a nexus between an offence and a particular indi- vidual, for example, in jurisdictions where applicants might only have a single name. Financial sources and capacity. Does the applicant have access Suitability The Statutory Strip Search David Green lists the criteria for awarding casino operating licenses to sufficient, transparent sources of funds to establish and maintain their suitability to hold a licence? Have they ever been insolvent, or protected under an insolvency law? Prior experience of casino operation. While the essential busi- ness of casinos is straightforward, the operating procedures and con- trols needed to properly conduct the business are sophisticated. Even if an applicant does have casino operating experience, the question should be, has it been obtained in a correspondingly regulated envi- ronment, and at a commensurate level to the licence applied for? Regulatory compliance record. Is there evidence the applicant has ever had a casino licence suspended, revoked or made subject to a condition, or otherwise been subject to disciplinary action by a casino regulator? This enquiry should not be limited to compliance with the requirements of casino regulators; it should extend also to compliance with the requirements of fiscal, employment, equal op- portunity, competition and environmental legislation. Associates. An associate is any person or entity capable of exert- ing influence over licensees, whether through ownership, financing or other economic or family relationship. Evidence of a tainted asso- ciation might reflect adversely on the reputation of an applicant, or it may infer susceptibility to undesirable influence. Unsuitable associa- tions are usually rectifiable – e.g. by severing the connection between licensee and the unsuitable party. Management structure and capabilities. The casino industry has long been dominated by charismatic individuals. Does the man- agement structure, and the experience of those within it, enable a ca- sino licensee to function in the absence of its leadership? Casino licences are privileges, awarded only to those prepared to submit to the regulator’s microscope. A strip search it may be, but if there is nothing to hide, what’s the problem? A former Australian gaming regulator, David Green heads the gaming practice of PricewaterhouseCoopers in Macau, having originally come to the city in 2001 to conduct the feasibility study on the liberalisation of the local gaming industry. He also consults for both the Macau and Singa- pore governments on gaming regulation. Casino licences are privileges, awarded only to those prepared to submit to the regulator’s microscope. T