Inside Asian Gaming

inside asian gaming JUNE 2015 40 directors, the chairman of Occidental Petroleum, and insisted that he supply him immediately with proof of his ownership of his car. Please. What was he looking for, the Mafia?” Mr Wynn, is, of course, right. These are billion-dollar companies, and a car is not going to determine suitability. But refusal to comply with even an unreasonable demand can lead to a casino license being denied. The problem here seems to be that disconnect between the reason for the rule and the rule itself. Yes, the best way to regulate any legal gambling operation is to investigate the background of everyone involved in management or ownership, and to track every dollar in and out of the business. But why are we regulating? Why aren’t there the same types of government oversight on used car dealers or street vendors? There really was Mafia infiltration of casinos during the 1940s and ‘50s. The business is still, primarily, conducted with untraceable cash and gaming chips, with few paper records. There is not only the potential for skimming, but also for cheating. But is there the same need today to re- investigate publicly-traded corporations that have been licensed in a dozen jurisdictions as there was when the insiders had names like Bugsy and his girlfriend, the Flamingo? The industry trade group, the American Gambling and the law Benjamin “Bugsy” Siegel But is there the same need today to re-investigate publicly-traded corporations that have been licensed in a dozen jurisdictions as there was when the insiders had names like Bugsy and his girlfriend, the Flamingo? Gaming Association, has been trying for years to get regulators to curb their enthusiasm. The first head of the AGA was Frank Fahrenkopf, Jr., former chairman of the Republican National Committee. So it knew that it could not just come right out and say, “That’s a stupid rule.” Instead, it commissioned leading gaming attorney David O. Stewart to write a number of white papers, with titles like “Improving Gaming Regulation: 10 Recommendations for Streamlining Processes While Maintaining Integrity.” The AGA and other professional groups, such as the International Association of Gaming Regulators and the International Association of Gaming Advisors, have succeeded in streamlining regulation. They have been able to get many jurisdictions to adopt a “Multi-jurisdictional Personal History Disclosure Form.” If the point is to ensure that casinos are owned and run by people who are honest and competent, the questions should be the same, regardless of which state is issuing the license. The AGA’s recommendations seem small, but they could have a big impact. Mr Wynn would never have had reason to complain if outside directors were only registered, not licensed. Companies would save millions of dollars if they did not have to file reports, sometimes every three months, containing information that is easily available to regulators from other sources. And, is there any reason why waiters and waitresses have to undergo background checks? Perhaps we never will, or even should, reach a point where running a casino is like running any other business. But every government regulation should start with the question, “Is this rule really necessary?” Companies would save millions of dollars if they did not have to file reports, sometimes every three months, containing information that is easily available to regulators from other sources. And, is there any reason why waiters and waitresses have to undergo background checks?