Intro
The Gaming and Wagering Commission of Western Australia (the Commission) is a statutory authority, established under section 4 of the Gaming and Wagering Commission Act 1987 (GWC Act), and is responsible for controlling and regulating the conduct of gaming and wagering in Western Australia through the administration of the following legislation:
The Commission also has functions under the Racing and Wagering Western Australia Act 2003.
The Gaming and Wagering Compliance and Enforcement Policy provides the Department of Local Government Sport and Cultural Industries (DLGSC), the gaming and wagering industry, and the community of Western Australia guidance on the Commission’s approach to compliance and enforcement by setting out the Commission’s legislative framework, regulatory posture and regulatory priorities.
The policy provides high level guidance but does not reduce, extend or modify obligations or powers contained in legislation and associated instruments. The policy guides, but does not control, compliance related decisions. Therefore, if there is any inconsistency between the policy and the legislation under which a statutory function, power or discretion is exercised, the legislation will prevail.
This policy addresses item 4.2 of the Commission’s strategic plan (Enhance GWC Regulatory Posture and Compliance and Enforcement Policy) and Perth Casino Royal Commission recommendation 41 that there be a Gaming and Wagering Commission policy regarding the regulatory posture that the Commission will adopt and how the Gaming and Wagering Commission Act will address the risk of regulatory capture.
The following list provides a summary of the legislation that informs the Commission’s regulatory role and its key objectives.
The Gaming and Wagering Commission (Continuing Lotteries Levy) Act 2003 and regulations sets the Continuing Lotteries Levy for administration under the GWC Act. The TAB (Disposal) Act 2019 can be enacted to amend legislation relative to the disposal (whole or part) of the TAB.
In addition to the direct responsibilities, the Commission recognises the need to provide oversight to gambling entities’ efforts to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF) requirements and ensure appropriate interventions are in place to guard against high-risk activities. As part of our AML/CTF approach we liaise, cooperate and exchange information with key partner agencies such as Australian Communications and Media Authority (ACMA), Australian Transaction Reports and Analysis Centre (AUSTRAC), WA Police Force, Australian Federal Police, and interstate and international regulators.
The Commission also recognises its obligations under the Corruption, Crime and Misconduct Act 2003 (WA), to report suspected serious misconduct by public officers.1
The Commission’s approach to regulation is based on the following principles:
The Commission’s regulatory principles inform its compliance and enforcement activities to focus on:
To achieve the objectives and to ensure our compliance approach aligns with our regulatory principles, the Commission will:
The Commission views compliance as a shared responsibility with the regulated community and expects all entities to:
The Commission has a low-risk appetite for not achieving its regulatory priorities.
In regulating the gaming and wagering industry, the Commission gives particular consideration to conduct:
The Commission recognises that regulatory capture occurs when the regulator becomes influenced or dominated by the industry it regulates, and the interests of the regulated are put ahead of public interest.
Regulatory Capture may manifest in a shared belief of the need to sustain gambling revenue, or the belief that gambling is a benign industry.3 It can result in failing to ensure the regulated entity complies with the requirements, or the regulated entity having undue influence over the manner in which it is regulated.
The Commission acknowledges that positive and active engagement with regulated entities is required to enable the entities to understand their rights and obligations and minimise inadvertent non-compliance. Engagement with industry is required to develop a deep understanding of the regulatory environment, and ensure regulatory settings are fit for purpose and meet legislative requirements and State Government Expectations.
To allow effective engagement, yet guard against regulatory capture, the Commission has implemented measures to assist in managing conduct. These include:
DLGSC code of conduct policy and guidelines were amended to recognise the additional considerations for DLGSC staff undertaking regulatory work for the Commission.
Matters of misconduct and serious misconduct can be referred to the Public Sector Commission and Corruption and Crime Commission respectively.
A range of compliance and enforcement tools are employed to encourage voluntary compliance, proactively monitor compliance, detect and respond to suspected non-compliance and enforce the consequences of non-compliance. The Commission proactively focuses on education and encouraging voluntary compliance by individuals and entities involved in gaming and wagering. Reactive compliance and enforcement activities will be undertaken in a targeted and proportionate manner as required.
The Commission’s Compliance and Enforcement policy provides tools that can facilitate compliance and when they may be used.
The Commission will support those who do the right thing.
The Commission builds cooperative and collaborative relationships with regulated parties and stakeholders. We will actively communicate with regulated entities as well as relevant external stakeholders, including community and not-for-profit groups, other government agencies (including enforcement), industry bodies and gambling support service providers.
We aim to understand stakeholder needs, help them comply, and obtain information we need to develop and establish effective and efficient gaming and wagering policies and practices.
The Commission recognises that one of the most effective ways of ensuring compliance with the legislation and minimising gambling-related harm, is to ensure individuals have access to the information they need to make informed decisions and understand their regulatory obligations. We use education as a regulatory tool to influence the behaviour of the entities and individuals we regulate.
The Commission also seeks to assist gamblers and the WA community to be aware of their rights and responsibilities under the laws through clear and targeted communications. We will actively engage with relevant external stakeholders, including community groups, harm minimisation groups, other government agencies, industry bodies and gambling support service providers.
The Commission also seek to assist the broader community to be aware of the risks associated with gambling.
The Commission promotes high compliance rates and encourages and fosters voluntary compliance with gaming and wagering legislation through effective engagement and the supply of information to regulated entities. It seeks to promote voluntary compliance through interactions during site visits, audits, inspections and complaint investigations. If this is not forthcoming, then enforcement tools may be utilised.
Effective licensing services are undertaken to verify key personnel, facilities, equipment, systems, controls and activities to ensure the integrity of gaming and wagering operations in Western Australia.
The Commission seeks to provide clear, published policies and position statements on gaming and wagering related activities in Western Australia to assist organisations and individuals to understand and comply with their obligations.
The Commission directs the casino licensee through the issuance of Directions and the approval of rules of authorised casino games and casino procedural and operating manuals. Proposed amendments to rules and manuals are considered relative to the Commission’s Regulatory Priorities and the adequacy of compliance.
The Commission may also issue directions to RWWA regarding the organisation, management and control of its gambling operations. This may require RWWA to adopt, vary, cease or refrain from a practice.
Audits are carried out to ensure regulated entities’ financial systems and processes correctly account for taxable revenue. Audits are also carried out to ensure funds obtained through community gaming events are spent in accordance with the activity specified in their permit.
Systemic programs to ensure gaming is delivered in accordance with the agreed rules, and with adequate controls to maintain compliance with legislative requirements.
Inspections are carried out in the casino on individual gaming machines, tables, personnel and venues. Within the community, inspections are carried out on licensed TABs, permitted gaming functions and other regulating gaming and wagering activities. In all circumstances, inspections may be carried out as part of an audit schedule or on an ad hoc basis, in response to presenting circumstances. Inspections may identify breaches that warrant enforcement action.
Investigators conduct investigations into potential contraventions of obligations and look at issues that go beyond routine non-compliance.
Investigations may be undertaken, in response to suspected non-compliance. This may arise from outcomes of licensing, audit and inspection activities, complaints from the public or intelligence from law enforcement and other regulatory bodies.
A range of compliance activities can result in the detection of a breach, which requires consideration of enforcement action. In addition to the compliance activities listed in the previous sections, the following activities may also give rise to the need for enforcement.
Findings from regulatory audits, data audits, or operational audits may identify breaches that result in enforcement action.
Breaches can be detected and result in enforcement action due to our efforts to monitor obligations against legislation, rules, agreements, directions and licence conditions. They can also be detected and result in enforcement action through our monitoring of significant event notifications and date-based obligations.
Regulated entities and individuals are required to disclose information which may signal a breach and result in enforcement action.
We may identify contraventions when assessing applications (for example, applicants providing misleading information) and take enforcement action. If we identify contraventions for applicants who are not currently a licensee, we may need to refer the case on to another appropriate regulator. Probity refreshes may also detect breaches and result in enforcement action.
We may receive a complaint or notification of an incident from the community or other party that suggests a potential or apparent contravention. An investigation may result in the identification of a breach and result in enforcement action.
The Commission has the power under 18(3) GWC Act to consult and collaborate with any government department, authority, instrumentality or agency in the State or elsewhere or with any other body which has interests relevant to those of the Commission.
The Commission may receive information from and refer relevant to other agencies or regulators for their consideration. Those other agencies include, for example, WA Police Force, ACMA, AUSTRAC and the Australian Federal Police.
Insights from intelligence-gathering activities and data scanning may result in the identification of a breach and enforcement action.
In deciding the appropriate enforcement action to take, the following factors are to be carefully considered and assessed.
The enforcement action chosen should align with, and support, our overall regulatory objectives.
A consideration is whether the regulated entity/individual significantly benefited and an enforcement action must ensure that the entity cannot regard any penalty or action as a mere ‘cost of doing business’.
Deliberate or opportunistic breaches should attract a stronger enforcement action compared with inadvertent or accidental matters.
Generally, an enforcement action will be stronger and should be escalated where compliance history is poor.
The strength of the enforcement action should increase as the degree and scale of potential or actual harm caused by the breach increases. The strength of the enforcement action should also increase as the level of risk posed to the community, vulnerable populations, or to the integrity of the gambling industry increases. This includes the risk of criminal infiltration or exploitation.
A negative attitude towards and/or lack of cooperation with the regulator by a regulated entity or individual should result in stronger enforcement action. Factors to consider include:
Consideration should be given to enforcement actions taken for similar matters in the past. However, care should be exercised to ensure distinguishing factors are properly weighed.
The enforcement action should deter the specific regulated entity or individual from offending again and send a message to the wider industry to dissuade them from committing similar breaches.
The list below provides a summary of the enforcement tools available under gaming and wagering legislation in Western Australia. Some of these powers can be exercised directly by the Commission, while others are available to be exercised by the Minister of Racing and Gaming, on the recommendation of the Commission.