New South Wales Gaming Regulator Accused of Hiding Evidence of Money Laundering

Article by : Erik Gibbs Aug 3, 2023

• 
• 

Liquor and Gaming NSW, the gambling regulator of New South Wales (NSW), is facing intense scrutiny at a time when gambling remains a sensitive subject across the country. It’s accused of neglecting to furnish crucial documentation about money laundering through slot machines, although the regulator believes it didn’t have to provide the information.

During the 2022 Project Islington investigation conducted by the NSW Crime Commission, the regulator was responsible for providing information it had accumulated over the years about slots across the state. The inquiry was specifically launched to determine if hundreds of millions of dollars were being laundered through the machines as some insiders had claimed.
A treasure trove of undisclosed papers came to light due to an appeal made by Independent MP Alex Greenwich. The plea was lodged in response to allegations that Liquor and Gaming NSW had deliberately concealed significant files during the inquiry.

Among this classified material were dossiers on individuals suspected of committing financial fraud, and in reaction to this plea, Liquor, and Gaming NSW extensively scoured their archives, yielding a haul of 8,497 pertinent documents.

Reportedly, 125 of these that pertain to the investigation never made it before the inquiry panel, as disclosed by committee officials. In addition, contrary to expectations, it has been confirmed by Liquor and Gaming that out of the requested documents, as many as 38 need to be more compliant during the audit process.
In light of this situation, Crime Commissioner Michael Barnes has decided to step in personally. He has taken it upon himself to ensure Liquor and Gaming NSW authorities rectify the situation by immediately providing all 125 required documents as soon as possible.

In correspondence addressed to Liquor and Gaming NSW, Barnes highlighted the discovery of the 38 documents related to “persons of interest” that were tagged for distribution to the Crime Commission. These records, all from early 2022, are relevant to the ongoing investigation; therefore, they directly impact the inquiry.

The NSW Parliament will receive the documents for scrutinizing, which will encourage interested parties to inquire further. The commission has steadfastly denied money laundering, claiming that criminals are more prone to choose slots only to gamble with their stolen money rather than for money laundering.

The commission also emphasized the enhancement of data collection and analysis methods, urging both the government and the overall gaming industry to make improvements. Barnes highlighted the potential of integrating non-cash gambling as an additional avenue to enhance protection and facilitate the identification of money laundering activities.

Despite facing a recent cyberattack jeopardizing the project, NSW remains committed to progressing with a cashless trial for slots across the state. This bold initiative entails converting 500 machines to operate solely with digital payments throughout a 12-month trial period, following a previous trial conducted two years ago.