The Norfolk Island Gaming Authority will be shut down after a report released by the Federal Government found the regulator to be “barely viable”, failing its regulatory role, and with internal controls that could “give rise to fraud and corruption”.
The report, based on a two month investigation of the authority found it to lack transparency, oversight, or resources.
“The authority and the former administration have been more concerned about raising revenue from gaming licences than having due regard to its regulatory functions,” the report said.
“We recommend that it not continue to operate in its current form.”
The authority lost its power to issue wagering licenses in April after it was discovered that the authority granted permission for one of the largest illegal bookmakers in the world to operate in Australia.
The report came to the overall conclusion that the gaming authority was “largely ineffective” and had “failed to fulfil its regulatory role to an acceptable level”.
Federal minister for local government and territories, Fiona Nash said there was no choice but to shut down the authority.
“Gambling in Australia must be carefully regulated to ensure the integrity of our sport and to protect consumers,” said Nash.
“Centium’s report made it abundantly clear that the authority is beyond redemption and that these problems cannot be resolved satisfactorily. As a result, I am entirely confident that closing the authority is the right thing to do.”
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