Sydney high roller casinos could open dirty money floodgates

The NSW Government has been warned it runs the risk of opening the floodgates to laundered money if it approves either of two competing casino proposals before it.

State Cabinet is holding a special meeting to discuss the results of an independent examination of unsolicited proposals submitted by James Packer's Crown group and gaming company Echo Entertainment.

Crown has proposed building a six-star hotel at Barangaroo with gaming tables for high rollers, while Echo wants to extend its exclusivity licence and upgrade its casino The Star at Darling Harbour.

NSW Greens MP John Kaye says a second high-roller casino in Sydney can only survive if more gamblers from mainland China are attracted to the city.

But Dr Kaye cautions that gaming regulators in the United States and Asia have warned China's currency controls are forcing gamblers to turn to money laundering.

"It's not just the Greens saying there's a problem with laundered money, it's also the Nevada casino regulator," Dr Kaye said.

"It's also many other casino regulators who are saying these kind of high-roller rooms dependent upon growth from China inevitably bring in corrupt money.

"It's money that has been laundered alongside the proceeds of prostitution, drugs and also extortion."

An announcement on which proposal is more likely to proceed is expected later today.

Source: ABC News, 4 July 2013