Appendix K

Overview of functions of the regulator

The functions of the AGLC under the Gaming, Liquor and Cannabis Act include to:

• issue gaming licences (including casino licences)
• carry out gaming functions delegated to it under the Criminal Code or conferred on it by the Alberta Gaming, Liquor and Cannabis Act
• generate revenue for the Government of Alberta.

Obligations to cooperate with the regulator

Licensees and gaming employees must cooperate fully with AGLC inspectors and police officers attending at a casino. Licensees must, on the request of an inspector or the AGLC:

• provide materials (for example, records and documents) and provide a place where they may be inspected, audited, examined or copied
• assist in carrying out an inspection.

Statutory obligations relating to AML

Licensees must implement certain procedures if money laundering occurs or is suspected to have occurred. Specific AML requirements apply, including employee training and certification, verification of patron identity and reporting of certain transactions.

Key persons subject to regulatory oversight

Key persons subject to oversight include:

• employees of an applicant for a casino licence who exercise influence or control over day-to-day operations or decision making, or who have authority to hire or terminate the employment of registered gaming workers
• associates of an applicant or licensee (including spouses, partners, persons with financial interests in the applicant or licensee, and corporations affiliated with the applicant or licensee).

Applicable tests or standards relating to key persons

The AGLC may terminate or refuse to issue a casino licence if satisfied that any of the applicant’s key employees, associates or connected entities:

• have not acted or may not act in accordance with the law, with honesty and integrity or in the public interest
• have a background, reputation or associations that may result in adverse publicity for the Alberta gaming industry
• have, within the five years prior to being eligible for a casino licence, contravened relevant gaming legislation, regulations or licence conditions.

Overview of functions of the regulator

The functions of the MGC under the Massachusetts General Laws include to:

• determine applications for gaming licences and gaming employee licences
• monitor licensees and other persons having a material involvement with a licensee
• gather facts and information applicable to its obligation to issue, suspend or revoke licences
• inspect casino equipment, supplies and records.

The Division of Gaming Enforcement supports MGC regulatory responsibilities by investigating and prosecuting allegations of criminal activity related to gaming establishments. The Division provides assistance to the MGC when considering gaming rules and regulations.

The Investigations and Enforcement Bureau is the primary law enforcement agency for casino regulation. It investigates casino licensees and any activity taking place at a casino.

Obligations to cooperate with the regulator

Licensees must cooperate with the MGC in all gaming-related or criminal investigations and must make readily available all documents, equipment and personnel requested during a gaming-related investigation. The Bureau may impose a civil administrative penalty for a failure to comply.

Statutory obligations relating to AML

Casinos in Massachusetts have no express obligations in relation to money laundering under the Massachusetts General Laws. Casinos must comply with federal AML rules in the Code of Federal Regulations.

Key persons subject to regulatory oversight

Key persons subject to oversight include:

• ‘affiliates’, being those who directly or indirectly control, or are controlled by an applicant or licensee
• ‘close associates’, being those holding a relevant financial interest in, or who are entitled to exercise power in, the business of an applicant or licensee and who are able to exercise a significant influence over casino management or operations.

Applicable tests or standards relating to key persons

When considering a licence application, the MGC must instruct the Bureau to investigate the suitability of all parties interested in the licence, including affiliates and close associates. Suitability involves consideration of overall reputation, integrity and character.

Overview of functions of the regulators

The functions of the Gaming Control Board under the Gaming Control Act include to:

• protect the stability of the gaming industry through investigations, licensing, findings of suitability and enforcement of laws and regulations
• ensure the collection of gaming taxes and fees, an essential source of state revenue, and to maintain public confidence in gaming
• implement policy enforcing State laws and regulations governing gaming.

The Nevada Gaming Commission acts on Board recommendations and is the final authority on licensing matters. It may approve, revoke, suspend or apply conditions to licences.

Obligations to cooperate with the regulators

There is no express requirement for licensees to cooperate with the regulators. The extent of cooperation appears relevant in determining penalties. Independent agents (junket operators) must agree to cooperate with all requests, inquiries and investigations of the Board or the Commission.

Statutory obligations relating to AML

Casinos in Nevada have no express obligations in relation to AML under the Nevada Gaming Control Act. Casinos must comply with federal AML rules in the Code of Federal Regulations.

Key persons subject to regulatory oversight

Key persons subject to oversight include:

• ‘affiliates’, being those who directly or indirectly control or are controlled by a casino operator (‘control’ means having direct or indirect power to direct the management and policies of the casino operator)
• any person who provides services or property to a licensee under an arrangement permitting payment based on gaming earnings or profits.

Applicable tests or standards relating to key persons

The Commission may require an employee, agent, representative or lender of a licensee to apply for a licence where that person has power to exercise a significant influence over gaming operations. The Commission may also determine the suitability or require licensing of any person who provides services or property to a licensee. Suitability involves consideration of character, integrity, associations and criminal history.

Overview of functions of the regulator

The functions of the NJCCC under the Casino Control Act include to:

• determine all applications relating to casino licensing including issuing statements of compliance and granting casino key employee licences
• review and decide appeals relating to casino applications or licences
• refer matters to the Division of Gaming Enforcement for investigation including violations of the New Jersey Casino Control Act and matters concerning the conduct of gaming and gaming operations.

The Division of Gaming Enforcement has general responsibility to implement the New Jersey Casino Control Act. It issues approvals, conducts audits and inspections of casinos, reports matters to the Commission and investigates violations of the New Jersey Casino Control Act.

Obligations to cooperate with the regulator

Applicants and licensees must cooperate with the Division in the performance of its duties. There is a continuing duty to provide any assistance or information required, and to cooperate in any investigation or inspection, by the Division. Licensees also have a duty to inform the Division of potential violations of the New Jersey Casino Control Act.

Statutory obligations relating to AML

Casinos in New Jersey have no express obligations in relation to AML under the New Jersey Casino Control Act. Casinos must comply with federal AML rules in the Code of Federal Regulations.

Key persons subject to regulatory oversight

Key persons subject to oversight include:

• ‘affiliates’, being persons who directly or indirectly, through one or more intermediaries, control or are controlled by an applicant or licensee
• persons designated as those who must ‘qualify’ in conjunction with the licence, including directors, those who hold beneficial interest or securities in the licensee, and any holding, intermediary or subsidiary companies of an applicant or licensee.

Applicable tests or standards relating to key persons

The NJCCC cannot issue a casino licence unless it determines that all key persons meet the applicable qualification criteria. This involves consideration of the person’s character, honesty and criminal history, following which the NJCCC may issue a statement of compliance.

Overview of functions of the regulator

The functions of the Gambling Commission under the Gambling Act include to:

• determine applications for a casino licence and impose, vary or revoke casino licence conditions
• determine applications by the Secretary for orders to suspend or cancel a casino licence
• advise Ministers on the proposed problem gambling levy
• consider complaints and decide various appeals.

Obligations to cooperate with the regulator

There is no express requirement in the New Zealand Gambling Act that a casino operator must cooperate with the Gambling Commission.

Statutory obligations relating to AML

There are no provisions in the Gambling Act that impose express obligations on a casino in relation to AML. Anti-money laundering is governed by the Anti-Money Laundering and Counter Financing of Terrorism Act 2009 (NZ).

Key persons subject to regulatory oversight

Key persons subject to oversight are those who have a ‘significant influence’ in the casino.

A person has a significant influence in a casino if the person:

• is or will be a director of the applicant or the holder or proposed transferee of a casino licence
• is or will be employed or engaged by the casino as the chief executive or a senior manager of a casino
• owns or will own shares (with certain voting rights), directly or indirectly, in the holder of a casino licence
• is considered by the Secretary or the Gambling Commission to have a significant interest in the management, ownership or operation of a casino.

Applicable tests or standards relating to key persons

To grant a casino operator licence, the Gambling Commission must be satisfied that persons with a significant influence are suitable, taking into account honesty, criminal history, financial position, business skills, any professional disciplinary action, and any other matter the Gambling Commission considers relevant.

Overview of functions of the regulator

The functions of the CRA under the Casino Control Actinclude to:

• license, regulate and supervise the operation of casinos
• approve any system of controls and administrative and accounting procedures of a casino
• detect offences committed on casino premises
• advise the Minister about policy in relation to supervision and inspection of casinos.

Obligations to cooperate with the regulator

There is no express requirement in the Singapore Casino Control Act that a casino operator must cooperate with the CRA.

Statutory obligations relating to AML

The casino operator must perform due diligence to detect or prevent money laundering and financing of terrorism in certain circumstances, including when opening patron accounts, for cash transactions over SGD10,000 and where there is a reasonable suspicion that a patron is engaged in money laundering or terrorism financing activity. The Casino Control (Prevention of Money Laundering and Terrorism Financing) Regulations 2009 (Singapore) also impose obligations relating to cash transactions, customer due diligence and record keeping. Casino operators must develop frameworks to prevent money laundering and terrorism financing, and to report suspicious transactions.

Key persons subject to regulatory oversight

Key persons subject to oversight include ‘associates’ of a casino operator, being those who are or will be able to exercise a significant influence with respect to the management or operation of the casino. Assessing ‘significant influence’ involves consideration of the person’s position, financial interests, influence and powers in relation to the casino.

Applicable tests or standards relating to key persons

To grant a casino operator licence, the CRA must be satisfied that each associate is a suitable person to be associated with the management and operation of a casino. This involves consideration of the associate’s reputation, integrity and financial resources.

Overview of functions of the regulator

The functions of the Gambling Commission under the Gambling Act include to:

• issue, review and regulate casino licences
• investigate and institute criminal proceedings in respect of allegations of offences
• advise the Secretary of State on the incidence of gambling, how it is carried on, its effects and its regulation
• issue codes of practice about the provision of gambling and publish a statement setting out the principles it will apply when exercising its functions.

Obligations to cooperate with the regulator

The Licensing Conditions and Codes of Practice provide that the Gambling Commission expects licensees to work with it in an open and cooperative way and to disclose anything of which the Gambling Commission would reasonably need to be aware. The Gambling Commission may suspend and revoke an operating licence if the licensee has failed to cooperate with a review.

Statutory obligations relating to AML

Under the Licensing Conditions and Codes of Practice, casinos must conduct a risk assessment considering the risk of the business being used for money laundering or terrorist financing. Casinos must also have in place and review policies, procedures and controls to prevent money laundering and terrorism financing and must ensure the effectiveness of the policies. Licensees must also comply with the Money Laundering Regulations 2007 (UK).

Key persons subject to regulatory oversight

Key persons subject to oversight include those considered relevant to an application for a licence. The persons considered relevant may vary depending on information provided in the licence application and the applicant’s company structure but are likely to include those exercising a function in connection with, or having an interest in, the licensed activities.

Applicable tests or standards relating to key persons

When considering the suitability of an applicant, the Gambling Commission will seek evidence to enable an assessment of the integrity, competence (including qualifications and experience), criminal history and past and present financial circumstances of a person relevant to the application.