Regulation is called key to successful gambling industry

The key to establishing a successful gambling industry is a strong, independent regulator, said an Australian gaming executive yesterday. The comments come as Yeh Chu-lan (葉菊蘭), minister for transportation and communications, left for Las Vegas to look for tips on how to develop the industry in Taiwan.

David Charles, a senior executive at TABCORP, one of two licensed gaming corporations in the southern Australian state of Victoria, told the Taipei Times by phone yesterday that the success and longevity of the gaming industry depends on staying literally right on top of all gaming activities.

In the eastern state of New South Wales, where TABCORP owns Star City Casino, the "The Casino Control Authority oversees absolutely everything," Charles said.

"The regulators are right in the casino. [And while] they don't interfere with the operation, they check to make sure we do everything right," he said.

If the casino wants to employ new staff, or even knock down a wall, the authority must be sought for its approval, Charles said.

"It might seem a bit bureaucratic, but it means everything from a probity viewpoint is checked," he said.

In Australia, regulation falls under the authority of the state and territory governments, which in turn create an independent body to issue gaming licenses and monitor all gambling activities, Charles said.

In Victoria, which boasts one casino, around 27,000 poker machines and numerous metropolitan and rural race tracks, the Office of Gambling Regulation oversees all gaming activity, according to Charles.

New members must have had no ties to the industry for three years prior to taking up their position at the office, Charles said.

An official at the Ministry of the Interior, which is currently conducting a study on the possibility of establishing a casino on Penghu, said it is still uncertain which ministry would oversee a legalized gambling industry or indeed whether an independent body would be established to manage it.

Legalizing gambling in Taiwan would likely involve a cooperative effort between the Ministry of Justice, Ministry of the Interior and the Ministry of Transportation and Communications, the official said.

The official acknowledged the dearth of experience in Taiwan on managing a legalized gaming industry, saying foreign industry experts would be sought for their input into establishing regulations.